CenterWell Pharmacy outperformance was driven by higher direct-to-consumer volume and favorable Specialty Pharmacy drug mix.
Full year 2025 EPS outlook was raised from approximately $16.25 to approximately $17.
Humana delivered a good second quarter and first half relative to expectations, driven primarily by CenterWell Pharmacy and better-than-expected individual Medicare Advantage (MA) membership.
Inpatient utilization trends in Medicare Advantage are in line or better than expectations, with no acceleration observed.
Medicaid business is running in line with expectations, with progress in new states and stable margins.
Membership decline guidance improved from 550,000 to up to 500,000.
Pharmacy trends, including Part D, are tracking in line with expectations with low double-digit Rx trend.
Second quarter medical cost trends were in line with expectations.
Adjusted operating profit increased 9% to $1.4 billion, with three of four segments delivering double-digit growth in adjusted operating profit.
Corporate expenses decreased 4% excluding McKesson Ventures gains, driven by lower opioid-related expenses and technology costs.
First quarter earnings per diluted share increased 5% to $8.26, or 14% excluding gains from McKesson Ventures equity investments.
Free cash flow was negative $1.1 billion, impacted by $3.4 billion cash used for acquisitions and $189 million in capital expenditures.
International segment revenues increased 1% to $3.7 billion, with operating profit down 3% due to divestitures; excluding divested businesses, revenues grew 5% and operating profit was flat.
McKesson reported record consolidated revenues of $97.8 billion for Q1 fiscal 2026, a 23% increase year-over-year.
Medical-Surgical Solutions segment revenues increased 2% to $2.7 billion, with operating profit up 22% due to operational efficiencies and cost optimization.
Prescription Technology Solutions segment revenues increased 16% to $1.4 billion, with operating profit up 21%, driven by higher demand for access solutions including prior authorization services for GLP-1 medications.
U.S. Pharmaceutical segment revenues rose 25% to $90 billion, driven by increased prescription volumes, growth in oncology and specialty products, and new strategic customer onboarding.
Impact of Federal Policy Changes and the One Big Beautiful Bill Act
Management believes adverse impacts from the Medicaid component are manageable due to grandfathering provisions and phased implementation.
Approximately 60% of Medicaid volumes are in non-expansion states, lessening the impact.
Anticipates some insurance coverage loss due to exchange provisions, but expects their financial resiliency program to offset effects.
The expiration of enhanced premium tax credits (EPTCs) at year-end remains uncertain, with ongoing advocacy for extension.
Management is developing resiliency programs to mitigate potential adverse impacts from policy changes, including automation, digital transformation, and operational efficiencies.
More detailed updates on resiliency efforts and guidance for 2026 will be provided in the Q4 2025 earnings call.
Cash and investments at June 30 were $515 million, reflecting $115 million of common stock repurchased in the second quarter.
Korlym prescriptions volume grew by 49% year-over-year, though revenue growth was impacted by pharmacy capacity constraints estimated at a $15 million impact in Q2.
Net income was $35.1 million compared to $35.5 million in the second quarter of last year.
Revenue in the second quarter of 2025 was $194.4 million, compared to $163.8 million in the prior year period.
The company modified its 2025 revenue guidance to $850 million to $900 million.
Addus HomeCare reported total revenue of $349.4 million for Q2 2025, a 21.8% increase from $286.9 million in Q2 2024.
Adjusted earnings per share increased 10.4% to $1.49 from $1.35 in the prior year quarter.
Adjusted EBITDA rose 24.5% to $43.9 million compared to $35.3 million in Q2 2024, with an adjusted EBITDA margin of 12.6%.
Cash on hand was approximately $91 million at quarter end, with bank debt reduced by $30 million to $173 million, resulting in net leverage under 1x adjusted EBITDA.
Gross margin was stable at 32.6%, with G&A expenses slightly improved to 20% of revenue on an adjusted basis.
Home Health segment revenue declined 6% year-over-year but showed improving profitability due to expense rightsizing.
Hospice segment showed 10% same-store revenue growth and a 7% increase in average daily census.
Personal Care Services segment drove growth with 7.4% organic revenue increase and represented 77% of total revenue.
Cash burn for the quarter was approximately $11 million, a 36% improvement over the same period last year, ending with a cash position of $222 million.
ClonoSEQ test volumes increased 37% year-over-year to 25,321 tests delivered.
MRD business achieved positive adjusted EBITDA of $1.9 million, a significant improvement from a $11.3 million deficit a year ago.
MRD business revenue grew 42% year-over-year to $49.9 million, with clinical and pharma contributions of 65% and 35%, respectively.
Net loss for the quarter was $25.6 million.
Sequencing gross margin improved by 14 percentage points year-over-year to 64%.
Total company adjusted EBITDA loss improved to $7.2 million from a $21.4 million loss in the prior year.
Total revenue for Q2 2025 was $58.9 million, a 36% increase year-over-year.
Adjusted EBITDA of $69.3 million was also at the upper end of the guidance range, representing a margin of 11%.
BetterHelp adjusted EBITDA was $11.9 million with a margin of 4.9%, in the upper half of guidance but down year-over-year due to lower revenue and investments in insurance initiative.
BetterHelp average paying users declined by roughly 9,000 sequentially to 388,000, 5% lower year-over-year.
BetterHelp segment revenue was $240.4 million, up slightly sequentially and just above midpoint of guidance.
Chronic care program enrollment at quarter end was 1.12 million, down versus the first quarter due to a contract loss, but underlying enrollment would have increased by a low single-digit percentage excluding that impact.
Ended quarter with $680 million in cash and cash equivalents after retiring $551 million in convertible senior notes.
Free cash flow was $61 million in the second quarter, slightly ahead of the prior year period, with year-to-date free cash flow up by $11 million compared to last year.
Integrated Care adjusted EBITDA was $57.5 million, margin of 14.7%, at the high end of guidance but down from 17% prior year due to prior year tailwinds.
Integrated Care segment revenue of $391.5 million increased 3.7% over the prior year period and exceeded the high end of guidance.
Net loss per share was $0.19, compared to a net loss per share of $4.92 in the second quarter of 2024, which included a $4.64 related to a pretax noncash goodwill impairment charge.
Second quarter consolidated revenue was $631.9 million, near the high end of the guidance range and down 1.6% year-over-year, driven by a decline at BetterHelp, offset to some extent by growth in Integrated Care revenues.
U.S. Integrated Care segment membership was 102.4 million members, up 11% year-over-year.
U.S. Integrated Care virtual visit volume increased by 6% versus the prior year period.
Adjusted non-GAAP EBITDA was $54.1 million, a 63% increase from the prior year period, and adjusted non-GAAP EPS was $1.80, up from $1.02.
ANI Pharmaceuticals reported record Q2 2025 results with net revenues of $211.4 million, up 53% year-over-year on an as-reported basis and 37% organically.
Cash flow from operations was $110.8 million in the first half of 2025, with unrestricted cash increasing to $217.8 million at quarter-end.
Generics revenues increased 22% to $90.3 million, supported by new product launches including prucalopride tablets with 180-day exclusivity.
Non-GAAP gross margin improved to 64.9%, up over 6 points from the prior year, due to favorable product mix and strong generics performance.
Operating expenses increased, with R&D up 130% to $16 million and SG&A up 66% to $67.1 million, reflecting investments in sales teams and clinical studies.
Rare Disease revenues doubled year-over-year to $104 million, driven by Cortrophin Gel revenues of $81.6 million, up 66% year-over-year.
RYTELO US Market Commercial Strategy and Demand Growth
RYTELO net revenues reached $49 million in Q2, up 24% from Q1, driven by increased demand from new patient starts.
Demand growth in Q2 was 17% quarter-over-quarter, with early signs of success from commercial strategies.
Approximately 1,000 sites of care have used RYTELO to date, with about 600+ patients estimated from reorders.
Market research indicates 30% of new patient starts are in first and second lines, with an expectation of increased use in earlier lines as physicians gain confidence.
Payer coverage has improved to 90% of covered lives under favorable policies, up from 85%.
The commercial team expanded by over 20%, with trained staff now deployed, expected to impact by year-end.
Efforts include increasing brand awareness, education, and KOL engagement to drive prescribing confidence and advocacy.
The company is focusing on educating physicians about RYTELO's differentiation and expanding outreach to community HCPs.
Dafinchi
