BrightSpring Health Services, Inc. (BTSG)

Price$60.73Cached quoteAs of 2026-09-05 16:44 UTC

AI: Overvalued

Price checkThe shares look expensive because strong growth already carries a large valuation premium.

Using about 197.5 million June shares outstanding, the observed price implies roughly $12.1 billion of equity value. Adding $1.64 billion of June net debt gives company value near $13.8 billion, about 16.5 times the midpoint of management’s 2026 adjusted operating-profit guidance. Trailing free cash flow, meaning cash left after operating and capital spending, was about $402 million, giving only a 3.3% cash yield. Reported trailing net income implies roughly 33 times earnings, and one-time divestiture effects make recurring earnings less generous than that figure suggests.

Big pictureDebt is falling, but the balance sheet still offers limited downside protection.

June cash was $550 million against $2.19 billion of debt, leaving $1.64 billion of net debt. That is a major improvement from $2.55 billion at year-end 2024, helped by the Community Living sale and a $300 million second-quarter debt repayment. Current assets of $2.47 billion comfortably exceeded current liabilities of $1.56 billion. The weakness is asset quality: goodwill was $2.54 billion, exceeding common equity of $2.05 billion. If acquired businesses disappoint, accounting write-downs could therefore erase a meaningful portion of stated book value.

Business strengthProfit growth is strong, though cash growth and pharmacy volumes are less impressive.

Second-quarter revenue rose 23% to $3.87 billion, while operating income increased to $130 million from $49 million. First-half free cash flow rose only about 7%, from roughly $109 million to $116 million, so reported profit growth has not yet translated proportionally into cash. Pharmacy generated about 88% of quarterly revenue. Its prescriptions dispensed were essentially unchanged year over year, while revenue per prescription increased 22%. That makes drug mix, pricing and reimbursement unusually important to sustaining recent growth even though underlying healthcare demand is comparatively defensive.

What could change the storyContinued fast growth and cleaner cash conversion could justify today’s premium over time.

Management now expects 2026 adjusted operating profit of $820 million to $845 million. If the midpoint grew another 20% in 2027, it would approach $1.0 billion and reduce today’s company-value multiple toward 14 times, assuming no higher share price. The bear case is slower pharmacy pricing or reimbursement growth while prescription volumes remain flat. Capital allocation also matters: BrightSpring spent $120 million on first-half repurchases, yet shares outstanding increased from 174.2 million at year-end 2024 to 197.5 million by June 2026. Sustained cash growth and a falling share count would materially strengthen the valuation case.

AI: News

Q2 growth, sharp selloffBrightSpring raised its outlook after strong results, yet the shares fell sharply as expectations reset.

On July 31, BrightSpring reported second-quarter revenue of $3.87 billion, up 23%, and adjusted operating profit of $206 million, up 44%. Management raised full-year revenue guidance to $15.1 billion to $15.425 billion and adjusted operating-profit guidance to $820 million to $845 million. The stock nevertheless fell about 18% that session. The timing links the repricing to the earnings event, but does not prove its cause; with operating results improving, valuation and unusually high prior expectations are plausible explanations.

KKR secondary saleA major shareholder sold another large block while BrightSpring repurchased only a small portion.

In June, KKR and management selling shareholders offered 14,999,771 existing BrightSpring shares. The company did not receive proceeds from those shareholder sales, apart from cash tied to management option exercises, so the offering itself was not a normal company-issued stock sale. BrightSpring simultaneously repurchased 1,026,465 shares for about $60 million. The transaction increased public ownership as KKR continued reducing its stake, but the company’s repurchase covered only a fraction of the block and did not prevent the broader outstanding share count from rising.

Community Living divestitureThe asset sale released substantial cash for debt reduction and concentrated BrightSpring on remaining healthcare services.

BrightSpring completed the Community Living sale on March 30 for $835 million of gross cash consideration. Its June filing reported $810.9 million of cash proceeds after specified adjustments and selling costs, plus a $29.7 million after-tax gain. Because the transaction had been announced much earlier, the closing date alone cannot reliably explain any stock move. Its business-value effect is clearer: the sale increased liquidity, supported debt reduction, and removed Community Living from continuing operations while BrightSpring concentrated resources on pharmacy, home health and rehabilitation services.

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Revenue

2022

2023

2024

2025

Net income

2022

2023

2024

2025

Free cash flow

2022

2023

2024

2025

Total cash / debt

CashTotal debt

2022

2023

2024

2025

Financial statements

	2025	2024	2023	2022
Revenue	$12.91B	$10.07B	$7.69B	$7.72B
Gross profit	$1.52B	$1.27B	$1.14B	$1.35B
Gross margin	11.76%	12.57%	14.81%	17.54%
Operating expenses	$1.22B	$1.16B	$1.08B	$1.17B
Operating income	$295.3M	$108.0M	$58.1M	$187.8M
Operating margin	2.29%	1.07%	0.76%	2.43%
EBITDA	$459.5M	$312.4M	$260.5M	$391.8M
EBITDA margin	3.56%	3.10%	3.39%	5.07%
Net income	$190.7M	−$18.1M	−$154.6M	−$53.9M
Net profit margin	1.48%	−0.18%	−2.01%	−0.70%
Basic EPSper basic share	$0.94	-$0.09	-$1.31	-$0.46
Diluted EPSper diluted share	$0.87	-$0.09	-$1.31	-$0.46

Review official source filings ↗

Owners

Reported shareholders

Reference date Jun 30, 2026

≈13.58%of listed shares

KRAVIS HENRY R / KKR Management LLP / KKR Group Partnership L.P. / KKR & Co. Inc. / KKR Group Holdings Corp. / KKR Group Co. Inc. / ROBERTS GEORGE R26.83M shares · Jun 5, 2026

View holders

Top 20 reported holders of BTSG
Holder	% owned
KRAVIS HENRY R / KKR Management LLP / KKR Group Partnership L.P. / KKR & Co. Inc. / KKR Group Holdings Corp. / KKR Group Co. Inc. / ROBERTS GEORGE R	≈13.58%26.83M shares
Kohlberg Kravis Roberts & Co. L.P.	13.58%26.83M shares
KKR Associates Americas XII L.P. / KKR Americas XII Ltd / KKR Phoenix Aggregator L.P. / KKR Phoenix Aggregator GP LLC / KKR Americas Fund XII L.P.	≈13.58%26.83M shares
BlackRock, Inc.	12.17%24.03M shares
FMR LLC	6.78%13.39M shares
Invesco Ltd.	6.05%11.94M shares
Walgreens Boots Alliance, Inc. / WALGREEN CO	≈5.69%11.24M shares
VANGUARD PORTFOLIO MANAGEMENT LLC	5.04%9.95M shares
PRICE T ROWE ASSOCIATES INC /MD/	5.01%9.9M shares
VANGUARD CAPITAL MANAGEMENT LLC	3.70%7.31M shares
STATE STREET CORP	3.17%6.26M shares
T. Rowe Price Investment Management, Inc.	3.06%6.04M shares
GEODE CAPITAL MANAGEMENT, LLC	2.62%5.18M shares
ALLIANCEBERNSTEIN L.P.	2.19%4.32M shares
MANUFACTURERS LIFE INSURANCE COMPANY, THE	1.74%3.43M shares
FULLER & THALER ASSET MANAGEMENT, INC.	1.70%3.36M shares
AMERICAN CENTURY COMPANIES INC	1.67%3.29M shares
DIMENSIONAL FUND ADVISORS LP	1.39%2.74M shares
MARSHALL WACE, LLP	1.33%2.64M shares
MORGAN STANLEY	1.10%2.17M shares

Percentages use 197.51M shares of this listed class outstanding on Jun 30, 2026. ≈ compares the latest reported holding with a share total from a different date; it is not a confirmed current stake.

Reported positions exceed 100% in total, so the circle shows the selected holder only.

Source: SEC Form 4 ↗Updated Sep 29, 2026 · Quarterly data

Insider buys & sells

Jul 1, 2024–Jun 30, 2026

Buys2$258.66M disclosed value

Sells (SEC code S)26$1502826.19B disclosed value

Transaction	Insider	Type	Shares	Price	Value	Owned after
Jun 5, 2026Form 4	KRAVIS HENRY R +6TenPercentOwner	SellCommon Stock · indirect	14.67M	$58.45	$857.45M	27.15M
Jun 5, 2026Form 4	KKR Associates Americas XII L.P. +4TenPercentOwner	SellCommon Stock · indirect	14.67M	$58.45	$857.45M	27.15M
Jun 5, 2026Form 4	ROUSSEAU JON BSee Remarks	SellCommon Stock · indirect	130.0K	$58.75	$7.64M	0
Jun 5, 2026Form 4	ROUSSEAU JON BSee Remarks	SellCommon Stock	130.0K	$58.75	$7.64M	1.19M
Jun 5, 2026Form 4	Nalley Lisa ASee Remarks	SellCommon Stock	35.0K	$58.75	$2.06M	131.9K

Review ownership filings at SEC.gov ↗

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BrightSpring Health Services, Inc. (BTSG)

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