Alternate site health provider Option Care Health (NASDAQ: OPCH) reported Q3 CY2025 results topping the market’s revenue expectations, with sales up 12.2% year on year to $1.44 billion. The company expects the full year’s revenue to be around $5.63 billion, close to analysts’ estimates. Its non-GAAP profit of $0.45 per share was 5.1% above analysts’ consensus estimates.
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Option Care Health (OPCH) Q3 CY2025 Highlights:
- Revenue: $1.44 billion vs analyst estimates of $1.41 billion (12.2% year-on-year growth, 1.4% beat)
- Adjusted EPS: $0.45 vs analyst estimates of $0.43 (5.1% beat)
- Adjusted EBITDA: $119.5 million vs analyst estimates of $118.3 million (8.3% margin, 1% beat)
- The company slightly lifted its revenue guidance for the full year to $5.63 billion at the midpoint from $5.58 billion
- Management slightly raised its full-year Adjusted EPS guidance to $1.70 at the midpoint
- EBITDA guidance for the full year is $470.5 million at the midpoint, in line with analyst expectations
- Operating Margin: 5.9%, in line with the same quarter last year
- Free Cash Flow Margin: 9.1%, down from 11.8% in the same quarter last year
- Market Capitalization: $4.65 billion
Company Overview
With a nationwide network of 177 locations serving 43 states and a team of over 4,500 clinicians, Option Care Health (NASDAQ: OPCH) is the largest independent provider of home and alternate site infusion services, delivering medications and clinical support to patients across the United States.
Revenue Growth
A company’s long-term sales performance is one signal of its overall quality. Any business can put up a good quarter or two, but the best consistently grow over the long haul. Luckily, Option Care Health’s sales grew at a solid 13.4% compounded annual growth rate over the last five years. Its growth beat the average healthcare company and shows its offerings resonate with customers.
We at StockStory place the most emphasis on long-term growth, but within healthcare, a half-decade historical view may miss recent innovations or disruptive industry trends. Option Care Health’s annualized revenue growth of 14.7% over the last two years is above its five-year trend, suggesting its demand was strong and recently accelerated. 
This quarter, Option Care Health reported year-on-year revenue growth of 12.2%, and its $1.44 billion of revenue exceeded Wall Street’s estimates by 1.4%.
Looking ahead, sell-side analysts expect revenue to grow 7.9% over the next 12 months, a deceleration versus the last two years. Despite the slowdown, this projection is above average for the sector and implies the market sees some success for its newer products and services.
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Operating Margin
Option Care Health’s operating margin might fluctuated slightly over the last 12 months but has remained more or less the same, averaging 6.3% over the last five years. This profitability was mediocre for a healthcare business and caused by its suboptimal cost structure.
Analyzing the trend in its profitability, Option Care Health’s operating margin of 6% for the trailing 12 months may be around the same as five years ago, but it has decreased by 1.1 percentage points over the last two years.
In Q3, Option Care Health generated an operating margin profit margin of 5.9%, in line with the same quarter last year. This indicates the company’s overall cost structure has been relatively stable.
Earnings Per Share
We track the long-term change in earnings per share (EPS) for the same reason as long-term revenue growth. Compared to revenue, however, EPS highlights whether a company’s growth is profitable.
Option Care Health’s EPS grew at an astounding 199% compounded annual growth rate over the last five years, higher than its 13.4% annualized revenue growth. This tells us the company became more profitable on a per-share basis as it expanded.
We can take a deeper look into Option Care Health’s earnings quality to better understand the drivers of its performance. A five-year view shows that Option Care Health has repurchased its stock, shrinking its share count by 11.8%. This tells us its EPS outperformed its revenue not because of increased operational efficiency but financial engineering, as buybacks boost per share earnings. 
In Q3, Option Care Health reported adjusted EPS of $0.45, up from $0.41 in the same quarter last year. This print beat analysts’ estimates by 5.1%. Over the next 12 months, Wall Street expects Option Care Health’s full-year EPS of $1.71 to grow 9.4%.
Key Takeaways from Option Care Health’s Q3 Results
It was good to see Option Care Health narrowly top analysts’ revenue expectations this quarter. We were also glad its EPS outperformed Wall Street’s estimates. On the other hand, its full-year EPS guidance was in line. Zooming out, we think this was a mixed quarter. The market seemed to be hoping for more, and the stock traded down 7.6% to $26.51 immediately following the results.
So should you invest in Option Care Health right now? If you’re making that decision, you should consider the bigger picture of valuation, business qualities, as well as the latest earnings. We cover that in our actionable full research report which you can read here, it’s free for active Edge members.
