Premier, Inc. Reports Fiscal-Year 2025 Third-Quarter Financial Results
Premier, Inc. (NASDAQ: PINC), a leading technology-driven healthcare improvement company, today reported financial results for the fiscal-year 2025 third quarter ended March 31, 2025. Fiscal-year 202...
- Total net revenue of $261.4 million (total net revenue excluding Contigo Health* of $255.3 million)
- GAAP net income from continuing operations of $27.6 million, or $0.32 per fully diluted share
- Adjusted earnings per share excluding Contigo Health* of $0.46
- Net cash provided by operating activities from continuing operations of $307.8 million and free cash flow* of $130.3 million for the first nine months of fiscal-year 2025
- Increasing adjusted EBITDA and adjusted EPS guidance; reaffirming guidance midpoint for total net revenue excluding Contigo Health [1][2]
CHARLOTTE, N.C.: Premier, Inc. (NASDAQ: PINC), a leading technology-driven healthcare improvement company, today reported financial results for the fiscal-year 2025 third quarter ended March 31, 2025.
Fiscal-year 2025 third quarter total net revenue of $261.4 million decreased 9% from the prior-year period, but increased 9% from the fiscal-year 2025 second quarter. Net income from continuing operations was $27.6 million, or $0.32 per share, compared to a net loss from continuing operations of $48.9 million, or a loss of $0.36 per share, in the prior-year period. Adjusted EBITDA* of $71.7 million decreased 25% from the prior-year period, but increased 43% from the fiscal-year 2025 second quarter. Adjusted EPS* of $0.44 decreased 10% from the prior-year period, but increased 76% from the fiscal-year 2025 second quarter.
"Our overall revenue and profitability grew sequentially and exceeded our expectations for the third quarter largely due to better-than-anticipated results in our Supply Chain Services segment," said Michael J. Alkire, Premier's President and CEO. "As a result, we are increasing our adjusted EBITDA and adjusted EPS guidance and reaffirming the midpoint of our consolidated revenue guidance range. In addition, adjusted EPS also benefited from share repurchases under our $1 billion share repurchase authorization, including the initiation of a $200 million accelerated share repurchase program announced in February as we continue to return capital to stockholders."
On October 1, 2024, the company announced that it had divested the S2S Global direct sourcing business. As such, and unless stated otherwise, all results presented in the following release reflect those of continuing operations. In addition, as the company's efforts to transfer to partners or wind down certain components of the Contigo Health business remain ongoing, results presented in this release continue to include contributions from that business. However, because of the expected transition and/or wind-down, the company is providing certain financial measures that exclude contributions from this business, and tables are included at the end of this release that reconcile the impact of the Contigo Health business on certain financial measures in the periods presented.
Consolidated Financial Highlights of Continuing Operations |
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| Three Months Ended March 31, |
| Nine Months Ended March 31, | ||||||||||||||
(in thousands, except per share data) |
| 2025 |
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| 2024 |
| % Change |
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| 2025 |
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| 2024 |
| % Change | ||
Net revenue: |
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Supply Chain Services: |
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Net administrative fees | $ | 142,234 |
| $ | 157,666 |
| (10 | %) |
| $ | 406,276 |
| $ | 458,022 |
| (11 | %) |
Software licenses, other services, and support |
| 18,671 |
|
| 17,796 |
| 5 | % |
|
| 54,763 |
|
| 46,938 |
| 17 | % |
Total Supply Chain Services |
| 160,905 |
|
| 175,462 |
| (8 | %) |
|
| 461,039 |
|
| 504,960 |
| (9 | %) |
Performance Services |
| 100,477 |
|
| 111,404 |
| (10 | %) |
|
| 288,751 |
|
| 330,803 |
| (13 | %) |
Performance Services excluding Contigo Health |
| 94,359 |
|
| 100,927 |
| (7 | %) |
|
| 266,942 |
|
| 299,542 |
| (11 | %) |
Net revenue | $ | 261,382 |
| $ | 286,866 |
| (9 | %) |
| $ | 749,790 |
| $ | 835,763 |
| (10 | %) |
Net revenue excluding Contigo Health* | $ | 255,264 |
| $ | 276,389 |
| (8 | %) |
| $ | 727,981 |
| $ | 804,502 |
| (10 | %) |
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Net income (loss) from continuing operations | $ | 27,613 |
| $ | (48,859 | ) | NM |
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| $ | 54,716 |
| $ | 43,358 |
| 26 | % |
Net income (loss) from continuing operations attributable to stockholders | $ | 27,839 |
| $ | (39,892 | ) | NM |
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| $ | 43,598 |
| $ | 56,112 |
| (22 | %) |
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Diluted earnings (loss) per share from continuing operations attributable to stockholders | $ | 0.32 | $ | (0.36 | ) | NM |
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| $ | 0.46 | $ | 0.48 | (4 | %) | |||
NM = not meaningful | |||||||||||||||||
Consolidated Non-GAAP Financial Highlights of Continuing Operations |
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| Three Months Ended March 31, |
| Nine Months Ended March 31, | ||||||||||||||
(in thousands, except per share data) |
| 2025 |
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| 2024 |
| % Change |
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| 2025 |
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| 2024 |
| % Change | ||
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NON-GAAP FINANCIAL MEASURES*: |
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Adjusted EBITDA: |
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Supply Chain Services | $ | 85,665 |
| $ | 102,133 |
| (16 | %) |
| $ | 236,916 |
| $ | 300,052 |
| (21 | %) |
Performance Services |
| 19,450 |
|
| 26,890 |
| (28 | %) |
|
| 43,522 |
|
| 81,025 |
| (46 | %) |
Total segment adjusted EBITDA |
| 105,115 |
|
| 129,023 |
| (19 | %) |
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| 280,438 |
|
| 381,077 |
| (26 | %) |
Corporate |
| (33,369 | ) |
| (33,778 | ) | 1 | % |
|
| (96,174 | ) |
| (96,105 | ) | — | % |
Adjusted EBITDA | $ | 71,746 |
| $ | 95,245 |
| (25 | %) |
| $ | 184,264 |
| $ | 284,972 |
| (35 | %) |
Adjusted EBITDA excluding Contigo Health | $ | 72,606 |
| $ | 96,351 |
| (25 | %) |
| $ | 189,327 |
| $ | 290,146 |
| (35 | %) |
Adjusted net income | $ | 38,969 |
| $ | 54,926 |
| (29 | %) |
| $ | 98,009 |
| $ | 168,614 |
| (42 | %) |
Adjusted EPS | $ | 0.44 |
| $ | 0.49 |
| (10 | %) |
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