NASDAQ$PINC

Premier Inc · Q1 2025 earnings

Q1 2025 earnings · · Investor relations

Briefing

Premier's first quarter results slightly exceeded expectations for revenue and profitability, and reaffirmed fiscal 2025 financial guidance.

Premier, Inc. reported financial results for the fiscal year 2025 first quarter ended September 30, 2024. The company's first quarter results slightly exceeded expectations for revenue and profitability. The company is reaffirming its previously released fiscal 2025 financial guidance ranges.

  • Net revenue decreased 8% from the prior-year period.
  • Net income from continuing operations increased 75% from the prior-year period.
  • Diluted earnings per share from continuing operations increased 95% from the prior-year period.
  • Adjusted EBITDA decreased 33% from the prior-year period.

Headline financials

Total Revenue

$248M

Previous: $319M-22.2%
EPS (adj)

$0.34

Previous: $0.54-37.0%
Adjusted EBITDA

$62.4M

No prior period
Adjusted Net Income

$34.7M

No prior period
Net Administrative Fees

$133M

No prior period
Software Licenses, Other Services and Support

$18.8M

No prior period
Capital Expenditures

-$17.7M

Previous: $21.3M-183.3%
Net Income

$72.9M

Previous: $42.4M+72.0%
Operating Income

$35.3M

Previous: $59M-40.1%
Gross Profit

$180M

Previous: $211M-14.3%
R&D Expense

$586K

No prior period
Stock-Based Comp

$6.93M

Previous: $6.69M+3.6%

Revenue & EPS history

Premier · Revenue · Quarterly

$248M

Q1 2025-22.2%vs Q1 2024
Beat estimate in 10 of 14 quarters(71%)
ActualEstimate

Revenue by segment

Premier · $319M total across 2 segments · Q1 2024

  • Supply Chain Services
    $211M-4.0%
  • Performance Services
    $108M+14.7%

Forward guidance

Based on results for the first quarter of fiscal 2025 and its current outlook for the remainder of the fiscal year, the company is reaffirming the following: Guidance Metric Fiscal 2025 Guidance Range

Tailwinds

  • Net administrative fees revenue of $495 million to $525 million, which includes $60 million to $75 million in revenue related to non-healthcare member purchasing
  • Supply Chain Services segment software licenses, other services and support revenue of $65 million to $85 million
  • Capital expenditures of $90 million to $100 million
  • Effective income tax rate in the range of 25% to 27%
  • Cash income tax rate of less than 5%

Headwinds

  • Free cash flow of 45% to 55% of adjusted EBITDA
  • Does not include the impact of any significant acquisitions or share repurchases subsequent to the completion of the $400 million accelerated share repurchase transaction (“ASR”) in July 2024
  • Adjusted EBITDA, adjusted EPS and free cash flow presented in this financial guidance are forward-looking non-GAAP measures.
  • Premier, Inc. does not provide forward-looking guidance on a GAAP basis as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated.
  • As a result of the company’s previously announced plan to divest a majority interest in the Contigo Health business, guidance is being presented excluding financial contributions from this business.

Historical earnings impact

How earnings announcements have historically affected this stock's price.

Avg. return before/after earnings

Based on 2 quarterly earnings reports

Historical avg

-0.6%

Avg return

Earnings day

-0.3%

Avg return

5 days after

-0.3%

Avg return

30 days after

44%

24 / 54 earnings

Positive

+16.6%

Q1 2025

Best reaction

-18.7%

Q3 2023

Worst reaction

Earnings price reactions
QuarterReport dateReaction (Day 0)+5 days+30 days
Q2 2026
Q1 2026-0.1%-0.1%
Q4 2025+7.3%+2.9%+8.1%
Q3 2025+11.8%+12.4%+12.7%
Q2 2025-14.7%-16.3%-21.7%
Q1 2025+16.6%
Q4 2024+0.4%
Q3 2024-5.4%
Q2 2024+1.3%
Q1 2024+1.1%
Q4 2023-12.0%
Q3 2023-18.7%
Q2 2023-0.2%
Q1 2023-8.4%
Q4 2022-2.1%
Q3 2022+4.3%
Q2 2022-1.8%
Q1 2022+5.4%
Q4 2021+6.6%
Q3 2021-0.5%
Q2 2021+3.6%
Q1 2021+4.7%
Q4 2020-6.9%
Q3 2020-3.5%
Q2 2020-9.4%
Q1 2020+11.6%
Q4 2019-1.7%
Q3 2019+8.4%
Q2 2019-9.4%
Q1 2019-6.8%
Q4 2018+11.2%
Q3 2018-5.3%
Q2 2018-1.2%
Q1 2018-6.0%
Q4 2017+1.4%
Q3 2017+0.4%
Q2 2017-3.4%
Q1 2017-2.6%
Q4 2016-4.9%
Q3 2016-7.0%
Q2 2016+4.6%
Q1 2016+1.1%
Q4 2015-6.4%
Q3 2015+7.2%
Q2 2015+7.7%
Q1 2015-4.5%
Q1 2013-0.8%
Q4 2012-0.8%
Q4 2014+7.8%
Q3 2013-7.9%
Q3 2014+1.0%
Q4 2013-3.4%
Q2 2013-3.4%
Q2 2014+1.8%
Q1 2014+0.1%

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