Good morning, everyone. Welcome again to the 2026 Jefferies Healthcare Services Conference. I'm Brian Tanquilut, Healthcare Services analyst here at Jefferies. With us next is BrightSpring Health Services and the company's CEO, Jon Rousseau. Jon, thanks for doing this. Yeah. Thanks, Brian. Great to be here. Yeah. How about we just do a quick state of the union? Sure. Let's see. It's already September. Can't believe the kids have been back in school for a couple of weeks, but we continue to have a really productive year here as we work our way through Q3. Very pleased with the performance across the breadth of the organization. At our company, we really position ourselves as a leading provider of home and community healthcare. That's a very big market with a lot of demand for services in home and community settings. We think that's a great place to be. Within home and community healthcare, we target a number of pharmacy and provider businesses that we feel like all have a lot of support behind them and where we can differentiate and be very successful. On the pharmacy side, our specialty pharmacy infusion and home and community pharmacy, and on the provider side, home health hospice and rehab, where we just have really excellent teams running these businesses. There's a lot of benefit that we get from being one organization. We just continue to try to drive quality and innovate within our markets and do our best for patients so that they can receive great services in optimal settings. Jon, when you and I first met through the IPO process, you laid out operational goals, growth goals, and you've outperformed all of them. When we think about the growth outlook going forward, let's start with generics. One of the key drivers of the business today on the specialty pharmacy side. How do you see this all playing out? You've got a bunch of generic introductions over the next few years. Just curious what your outlook is for that. Yeah. As I said before, we like the breadth of the markets we're in. We can really leverage our infrastructure across all of these. What we do from a quality process perspective, from an HR perspective, from an M&A perspective, from a sales and marketing perspective, it's a very similar playbook for all of our pharmacy and provider businesses that we try to apply. Something that we've been focused on now for, hard to believe, about 10 years is just driving broad-based growth and really wanting to get to double-digit growth at a minimum, but doing so on the back of quality and on the back of really good technology and people. Broad-based growth across organizations, across the markets we really like is something we focus on all the time. Within our specialty business, generics is one of five or six different growth drivers just within our specialty business. We're pleased that when a drug does convert from a brand to generic, which is a good thing ultimately for the healthcare system from a cost perspective, we try to drive the utilization as much as we can and still offer really great services for our referral sources, our physicians, and our patients. We try to play a leading role where, when those events happen, inevitably there's always brands that are going to be converting to generic. That's how the life cycle works. We've built up a sales force of over 250 people at this point, where we try to be a great partner to all the referral sources out there, thousands of referral sources for these special patients every day. We just try to be the best partner we can through these events. There were a number of more significant brands going generic in the last couple of years. There's been a couple conversions this year, and as we look to next year, there's two or three of the bigger brands converting generically next year as well. You can't always perfectly predict or just the way it happens. You can't always say that XYZ happens every quarter, so it can tend to be a little bit lumpy. But as you look over a year or a period of time, you're just always going to have several of these events every year, and we've tried to position the organization to be as effective in those conversion processes as possible with how we partner with doctors and patients and manufacturers out there through them. We look forward to next year where we expect several more of these larger brands are going to convert. Jon, since you mentioned that generics is one out of five, the second growth driver that's key to that business too is LDDs, right? You've been very successful in adding new drugs to the portfolio. Just curious, if you can walk us through your number one, what does that look like for the next three years? Also, why does BrightSpring win these LDD arrangements? Yeah, I think thankfully for patients, there's just a ton of innovation that continues to occur from the biotech firms and our manufacturing partners, which is a wonderful thing. Your prognosis today with certain conditions is far different than even five years ago, and in some cases, even a year ago. So, when these dynamic new therapies come to market, we do our best to be a value-add provider for biotech and pharma through a lot of different mechanisms, whether it's data analytics reporting, whether it's patient support through the insurance verification process, whether it's patient education, serving as a hub for patients, providing third-party logistics services. Those are things we really try to do in addition to just fundamental service quality and great fulfillment support for the patient, being their fastest for them. These things are all elements of what manufacturers and biotech partners need to help get great clinical outcomes for their patients, which is so important to them. Oncology has been the space we've been the deepest in for coming up on 15 years now. As time has gone by, based on our capabilities in oncology and our partnerships with manufacturers, we've expanded into other areas. There's even some cardiology drugs now, some kidney drugs, but rare and orphan therapies is another one. I think a number of pharmacies that really focus on these niche areas do a nice job. We continue to try to do everything we can from a partnership perspective in these pharma services areas. It's resulted in about 20 new launches a year where we've been an exclusive or one of two in a pharmacy network, and we see that frequency continuing for the future. There's a very healthy innovation pipeline thanks to the work of a lot of great companies out there, and we've just continued to try to position ourselves as a provider of choice. I point to something like a Net Promoter Score, from doctors and from patients, which is pulsed every quarter from third-party sources, and it's not unusual for us to get 100 there on a Net Promoter Score, which is very difficult to do. So extremely proud of the team with how seriously they take these therapies for all the constituents. Jon, maybe if I may double-click on this quickly. There's been a lot of focus on the REVLIMID drug, and you were named as one of the two LDDs there. Just how should investors be thinking about the economic benefit to BrightSpring once you're an LDD partner for something like that? Because it's a big drug. Yeah. No, it is, and look, I think it'll be a great thing for patients, thankfully. We were honored yet again to be a partner, a one of two, in that launch, and certainly that's going to be helpful for us. But we really view that as part and parcel with the whole strategy of how do we continue to be a great partner across many new launches in the market every year? How are we somebody who's a very good partner as it relates to generic launches as well? How are we providing great fee for service? For us, just even within the specialty business, there's a multifactorial set of growth drivers there that we focus on. Then you look at the rest of pharmacy, then you look at the rest of the provider businesses. We have that mindset and mentality, as I said before, in terms of broad-based growth across the entirety of the company. But look, that will be a tailwind for us next year, that win, as all wins are. We look forward to doing everything we can to help prescribers and the manufacturer bring that drug to as many people as possible for bladder cancer. That makes sense. Another question that has come up a lot since your second quarter earnings is the comment you made on the call about gross profit per script being flat relative to Q2 for the rest of the year. Curious why that is or how you would explain to investors the dynamics around gross profit per script. Yeah. When you think about it, you have gross profit dollars, you have gross profit percent, and you have gross profit per script. Gross profit per script really tends to be an output from what is going on across your business in terms of mix of your drugs. We have thousands of different drugs across our pharmacy business. We will do over 40 million scripts this year. I think we are something like the 10th biggest pharmacy in the United States. You have the big retailers and the mail order houses, and then I think there is us. As your mix moves around, all those different drugs have different profiles of economics. As your mix moves around, your gross profit per script is going to bounce around, too. That is just completely normal. That is the math. We focus a ton on just gross profit dollars, and even more than that, EBITDA dollars, because we have a ton of focus on OpEx as well. We want to continue to show growth in those dollar metrics. Q2 to Q1 was flattish on gross profit dollars on the pharmacy side. We expect that to tick up in Q3. We expect it to tick up in Q4 from Q3. Very optimistic about the rest of the year. But it is really driving, ultimately, those gross profit dollars as you look at a large portfolio of different drugs and strategies across the business that we focus on the most. Jon, since you talked about broad-based growth earlier, maybe let's shift to the provider side of the business. When we think of home health, maybe let's start there, how are you feeling about the regulatory outlook, the pricing outlook, and then just the success you've had integrating a big acquisition with Amedisys assets? Yeah. It's great. Tonight and tomorrow and a little bit of Wednesday, we're having a national home health meeting here right around the corner. It'll be so much fun to spend time with hundreds of our local leaders who are in for that event. But clearly, we have a lot of enthusiasm about that space. The clinical benefit and value, along with the cost-effectiveness of home health is just beyond clear and beyond proven. It is part of the solution. Unfortunately, about 40% of the folks who are written for home health today don't even get it. We have continued to try to communicate and educate around the value of home health and hospice, as well as all other home and community healthcare services. We feel like there's many, many more patients that could benefit it to the benefit of the entirety of the healthcare system and total cost and total outcomes. What we are seeing and what we're optimistic about is that some of the home health rate cuts from the prior years are hopefully completed, and we'll get about a 2.5% rate increase this year, which is helpful. You could argue that should be 4%-5%, just given inflation on the cost side. But this has been a good year to see an increase starting in January. We're optimistic that that's going to be the new norm going forward. That's certainly appropriate. We need to provide more home health. Obviously, we're paying our nurses and therapists more every day. The technologies that we use go up in price every day. Adequate reimbursement for very valuable healthcare services in the home and community are something that we think is vital and beneficial for everybody. But we're optimistic. I don't think we would have probably completed that acquisition at the end of last year for some of those branches in the divestiture if we weren't optimistic about the future. It's a big market. It's still very, very fragmented. What we've tried to do is lean into our HR processes, our quality so we can be a preferred provider in our technology. I've talked about we're leaning into AI to automate certain workflows across the entirety of the organization. That's a deliberate investment that we've made. Home health would be a great example of where we've already deployed multiple solutions to automate workflow for the better. And we continue to lean into that as we look at every workflow. We believe if you have good quality, good internal processes, and if you have leading technology, that can help you be an innovator in the space and continue to professionalize the space as much as possible, which is what payers expect, all to the benefit of patients and our clinician employees. That is what we are continuing to do. I think we are clearly a natural consolidator in that market and others. We believe the environment will be rightfully conducive from a rate support standpoint. Jon, maybe I will follow up to that point you just made. You are the consolidator, one of very few consolidators left in the market in the home health hospice space. What is your appetite right now, or how should we think about the kinds of deals you are looking for on top of the organic growth that you are delivering? Yeah. When I speak about broad-based growth, and we think about each different business, and we talk about gross profit outlook on certain parts of the business, all of that is going into the model and the equation that we have that we talked about at Investor Day of we would like to continue to target 15%-20% growth for the coming two years, even off of a higher 26, and we still feel good about that. From an acquisition standpoint, hopefully that can be additive. We have, I think, done a nice job in the last two and a half years since going public of getting the leverage ratio to a really good place. If we do not do incremental investments and acquisitions over the balance of the year and TBD, we will be under two times leverage by the end of the year. A lot of that leverage decrease in that ratio has come from EBITDA dollar growth, and we have grown into it. But we have also had really good cash flow. Look, I think it is important to us is we are going to continue to try to drive double-digit growth as best we can, and we feel good about everything we have always said. But as we get bigger and bigger as an organization, focusing on cash flow, we feel like that is another really strong attribute of the organization. Excluding the taxes we paid on the Community Living divestiture this year, we will have over $600 million of operating cash flow, probably over $500 million of free cash flow. Jen, our CFO, has done a really good job on the interest rate side and on the refinancing side. With that, though, comes a little bit of added flexibility from an M&A standpoint. We were very heads-down the year or two before the IPO, the year or two since, just wanting to deliver from an organic standpoint operationally. But we do have a lot more optionality, I feel like today. We feel like when we invest in quality, when we invest in process, when we invest in technology, we can make companies better. I think now that we are public, it's been helpful. We're viewed by a lot of sellers as kind of a natural long-term home for their employees. People get really excited about joining our organization. That's what we've built, and we feel like we can be that long-term home for a lot of organizations, but with a set of processes that we're trying to continue to lead in our industry for the benefit of everybody. I don't think you'll see any huge moves from an M&A perspective from us, but if there's more mid-ish sized deals in the, I don't know, $5 million to $20 million of EBITDA range, I think you'll continue to see us maybe lean into those a little bit more. The smaller, just very low-cost, low multiple tuck-ins, geographical tuck-ins—that's been our bread and butter. We will continue to do probably 10 to 15 of those a year. But can we step into deals a little bit bigger? We certainly have flexibility to do that. We've done almost 80 acquisitions in the last eight years, and I think there's only two or so, something like that, where the EBITDA of what we bought is not higher. So we literally almost have 100% hit rate on acquisitions, and that's because of the diligence we put into it. That's because of the deal flow that we get. A lot of it's proprietary. We have synergies, obviously, leveraging the systems we've put in place, and we try to grow and run these businesses better. So, we're highly confident in our ability to do acquisitions, and hopefully that creates a lot of opportunity going forward. Jon, with $500 million of free cash, and it's going to be bigger next year as the EBITDA base grows and interest rates are locked for you guys. So with what you just said, you're looking at deals that are in the $5 million to $20 million range. So these aren't big transactions. The leverage ratio will naturally come down, or just walk me through how you're thinking about capital deployment towards buybacks or maybe ramping up acquisitions on the other side of the business. Just curious how you're thinking about that. Yeah. We'd like to stay in the 2x-3x range for leverage. We think that's pretty healthy. If you get a little bit below that for a period of time, we'll see. That is a range that we've been very comfortable with. In terms of use of capital between acquisitions, we've been supportive of a couple buybacks that have occurred. Our plan would be to continue to do that, to the extent there would be any more of those events. You've got things like dividends. I think we just take these things quarter to quarter. There certainly is a lot of acquisitions we could do. We could deploy $300 million or $400 million in EBITDA in the next six months if we wanted to. We've been very deliberate about what transactions we do, and we always try to make sure they are going to work out, and there's always a strategic rationale. So, we want to try to be really good stewards of the organization just from a balance sheet perspective and always making sure it's the right move in terms of what we feel like our markets need and where we can help deliver better solutions in a certain geography or for the market. So, the pace can tick up, it can tick down. Over the next year, we'll see. A lot of it is dictated by are there good opportunities there that interest you or not? We don't do deals just to do a deal. We remain as active as ever. Our pipeline has 50 plus transactions in it at any one point in time, but we probably do one out of every 40 we look at. So we're super picky. There's always a reason why we do things. But, I think this is an area that we continue to be optimistic about, and we'll continue to look at it quarter to quarter in terms of what we're most comfortable with. But I think 2x-3x ultimately would be a good range for us, and I think that points you in a certain direction as to what our M&A activity might be. I appreciate that discipline. Maybe just as we circle back to your comment earlier about 15%-20% EBITDA growth on top of a strong 2026, just maybe if you can walk us through how you're thinking about building into that number, because you've been tracking way above that over the last few quarters. Yeah. Certainly, as you get up to the levels we are from an EBITDA perspective, it is easy to just say, well, if everybody grows at this rate, you can just keep growing at the same rates. The fact is, it does get harder to grow EBITDA at certain percentages when you get bigger and bigger. So, as we have been saying for several years, it is not wise to think that an organization in healthcare services continues to grow at 30%-40% growth rates. And every investor has told us, "Make no mistake, we are not planning for that, but what do you think it looks like two to three years from now?" Because, in our minds, hopefully 15%-20% for a scaled company is exceptional and market-leading growth. So I think we have been second to Eli Lilly and Company, whether it has been three, five, or seven years in EBITDA CAGR within healthcare. Look, we clearly want to continue to try to do the right things to drive double-digit growth. We want to do it the right way with solutions that are beneficial to everybody. We think our growth benefits everybody in the system, so it is important to us. But look, it does come down to broad-based growth. We could go through every one of our three pharmacy and three provider businesses, and our internal models and plans and strategies get us to double-digit growth across every single one of them. Some of them are higher than others, and we have to go execute on that. And especially whether it is through continuing to be a partner with all the innovators out there, with drugs coming to market, being a helpful partner on generic launches, on infusion. We have an acute and specialty chronic infusion business where we see a lot more growth potential. Home and community pharmacy, we remain probably underweight on the assisted living side. Behavioral is a great market. We are a leader in hospice pharmacy. All of those markets are attractive. You look at home health, hospice, and rehab, where we have continued to outpace market growth rates of 5%-7%. And just a ton of consolidation and acquisition opportunities there. So you add it all up, and we try to stay far ahead of where we want to be. And then there are areas we continue to lean into. This primary care business has been incubating for a number of years. But we feel like with some of the ACO opportunities out there and payer opportunities in the next couple of years, we are hopeful that at some point, we are disclosing that as a meaningful EBITDA driver. We had a meeting this morning where we were talking about we are trying to change the standard of care in home health, where every home health episode is done virtually with a doctor as well. We are leaning into AI solutions across the board. Those could be further and further growth opportunities. So we have our core businesses, our three pharmacy and provider businesses, and we have strategic growth. And we talk about core and strategic growth all the time. Strategic is more integrated care, more cross-referrals, driving technology, driving value-based care models, and those are very real things internally that are getting a lot of momentum. For us, our expectation is that each business needs to grow at rates exceeding their market with focused strategies, and how do we make all of the parts worth more and perform better. That's what we just continue to focus on every day. Jon, in the two minutes we have left here, curious what you think investors are still missing about your story, and then maybe just closing points that you want them to walk away with from this presentation. Yeah, I think we've just always continued to focus for coming up on a decade now with how do we provide great services and treat our employees really well, and in doing so, how is that driving more and more volume growth? Three things have really sustained our organization over the past decade. It's been volume growth based on leading quality, it's been cost efficiency based on technology investments, and it's been accretive M&A. Those are the three things that we continue just to try to focus on. But it's a really great organization and a dynamic organization when you look at these businesses on the pharmacy and provider side, and all of them do well and are positioned to do much better in the future because of these markets that we're in that are very large, that still continue to have a lot of demand. We're fortunate to be in really attractive home and community healthcare markets. Within those markets, we're just continuing to try to lean in. I think it's just the breadth of performance that we've been able to have across the business that has been quite unique when you look across a lot of other companies out there. We like the diversification of that, but we also like the complementary revenue and growth opportunities from that as well. We will just continue to focus on having the best-of-breed businesses in what we think are really meaningfully important home and community healthcare markets. I think with more and more scale, we just see more and more opportunities for innovation in our markets and to continue to scale as a leader in delivering best-in-class solutions. Jon, thank you so much for all that. Yeah, Brian, good to see you. Thank you. Thank you. Thanks so much. Appreciate it. So you are here for a few more days for home health?