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what it is
Option Care sends infusion drugs, nurses, and care teams to patients' homes instead of hospital chairs.
how it gets paid
Last year Option Care Health made $5.6B in revenue. chronic inflammatory therapies was the main engine at $2.02B, or 36% of sales.
why it's growing
Revenue grew 13.0% last year. EDGAR shows revenue of $4.2B, up 192% vs. prior year, with EPS of $0.91 and gross margin of 19.2%.
what just happened
Revenue hit $4.2B, but the last reported EPS print also missed consensus by 6.12%.
At a glance
B+ balance sheet — decent shape, but not bulletproof
30/100 earnings predictability — expect surprises
20.2x trailing p/e — priced about right
14.5% return on capital — nothing to write home about
xvary composite: 71/100 — average
What they do
Option Care sends infusion drugs, nurses, and care teams to patients' homes instead of hospital chairs.
Scale is the whole trick here. Option Care has 185 locations across 43 states, so your doctor can send a patient into a network that already exists. Home infusion keeps patients out of higher-cost settings, and that reach helps the company stay the largest independent provider while earning an 8.5% operating margin (operating margin → profit after running the business → there is room for mistakes, but not many).
How they make money
$5.6B
annual revenue · their business grew +13.0% last year
chronic inflammatory therapies
$2.02B
+9.0%
acute infusion therapies
$1.29B
+12.0%
anti-infective and iv antibiotics
$1.12B
+8.0%
nutrition support
$0.73B
+6.0%
nursing and care coordination services
$0.44B
+10.0%
The products that matter
delivers infused therapies outside hospitals
Home Infusion Therapy
$5.6B revenue · +35.0%
it's the entire $5.6B business, and that concentration cuts both ways: 35.0% growth is impressive, but the 4.8% net margin leaves less room for mistakes than the growth headline suggests.
100% of revenue
Key numbers
$5.6B
annual revenue
This is already a scaled platform, not a tiny niche operator, which is why small margin changes create big dollar swings.
8.5%
operating margin
Operating margin → profit after running the business → the company is profitable, but not fat enough to ignore cost pressure.
14.5%
return on capital
Return on capital → profit earned on money put into the business → Option Care is earning more than average, but it is not magic.
$1.2B
long-term debt
Debt is 17% of capital, which is manageable, but it limits how sloppy acquisitions or reimbursement shocks can get.
Financial health
B+
strength
- balance sheet grade B+ — solid but not elite
- risk rank 3 — safer than 50% of stocks
- price stability 40 / 100
- long-term debt $1.2B (17% of capital)
- net profit margin 4.9% — keeps 5 cents of every dollar in revenue
- return on equity 21% — $0.21 profit for every $1 investors have put in
B+ — functional but not a standout on the balance sheet.
Total return vs. market
You invested $10,000 in OPCH 3 years ago → it's now worth $12,260.
The index would have given you $13,880.
source: institutional data · total return
What just happened
missed estimates
Revenue hit $4.2B, but the last reported EPS print also missed consensus by 6.12%.
EDGAR shows revenue of $4.2B, up 192% vs. prior year, with EPS of $0.91 and gross margin of 19.2%. But consensus also shows the last earnings release came in at $0.46 versus a $0.49 estimate, which is the kind of small miss that reminds you this stock gets judged on execution.
$4.2B
revenue
$0.91
eps
19.2%
gross margin
the number that mattered
19.2% gross margin mattered most because gross margin → money left after direct costs → that tells you whether supply inflation is starting to bite.
-
option care health likely delivered a solid performance last year.
-
based on preliminary results, the provider of home and alternate site infusion services was on track to produce a better-than-expected showing for 2025, with fourth-quarter revenues rising some 9%, vs. prior year, pushing the 12-month figure to a range of $5.65 billion-$5.66 billion, or up 13%.it also anticipated share profit of $0.46-$0.49 in the final stretch and $1.72-$1.76 for the full year (rising from $0.44 and $1.58, respectively, in 2024), on an adjusted basis. (note that starting in 2025, our presentation reflects adjusted earnings per share.) we remain cautiously optimistic about the near term. with home infusion therapies gaining traction against pricier hospital-based care, rising demand for the company’s services should drive the top line up in 2026.
-
recent acquisitions, like intramed plus, should also contribute.
-
however, higher supply costs could pinch margins.
-
medicare/medicaid reimbursement changes and pricing cuts for drugs, like stelara, facing biosimilar competition, may also hurt, with an estimated $25 million-$35 million full-year impact on gross profit.option care plans to offset these by expanding its core business and therapies portfolio, and deepen its pharma/payer partnerships.
source: company earnings report, 2026
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What could go wrong
the top risk is medicare, medicaid, and drug-pricing pressure on infused therapies.
med
reimbursement pressure
If public reimbursement rates change, OPCH does not have much margin buffer to absorb it. This is a $5.6B business with a 4.8% net margin.
A weaker reimbursement formula would hit profit faster than revenue because the economics are already thin.
med
drug pricing and biosimilar competition
Management already flagged Stelara-related pricing pressure and other drug pricing cuts as a gross profit headwind.
Known impact: $25M–$35M of full-year gross profit pressure.
med
supply cost inflation
Higher supply costs can erase a lot of value when you only keep about five cents of profit per revenue dollar.
This does not need to look dramatic to hurt. Small cost increases matter more in low-margin healthcare services.
The combined issue is simple: a $25M–$35M gross profit hit is manageable on $5.6B of revenue, but much less manageable when net margin is only 4.8% and earnings predictability is 30/100.
source: institutional data · regulatory filings · risk analysis
Pay attention to
risk
gross profit pressure versus growth
Revenue can still look healthy while drug pricing takes $25M–$35M out of gross profit. That spread is the whole short-term story.
metric
whether EPS gets above $1.75
The FY2026 estimate is $1.85. If earnings cannot move past the 2025 base by much, the valuation argument gets thinner.
calendar
2026 revenue path toward $6B
That is the next scale test. Missing it would matter because the stock already trades at 20.2x trailing earnings.
trend
institutional flow after two selling quarters
If the selling streak extends, the market may be telling you the growth story is no longer enough on its own.
Analyst rankings
short-term outlook
top 5%
momentum score 1 — the highest rating. in human-speak, analysts think OPCH should outperform most stocks in the near term.
risk profile
average
stability score 3 — this sits in the middle of the pack. Not especially safe. Not especially fragile.
chart momentum
top 20%
technical score 2 — price action has been better than average, which helps until fundamentals stop cooperating.
earnings predictability
30 / 100
This is the warning label. The business can surprise you, and not always in the fun direction.
source: institutional data
Institutional activity
institutions have been net selling for 2 consecutive quarters — 197 buyers vs. 197 sellers in 3q2025. total institutional holdings: 0.2B shares. net selling for 2 quarters.
source: institutional data
Price targets
3-5 year target range
$17
$45
$35
current price
$31
target midpoint · 12% from current · 3-5yr high: $60 (+70% · 14% ann'l return)
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