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CEO Jason Hollar stated the company feels well-positioned due to its diverse payer mix and unique capabilities. He noted that for Medicare, CGM products represent less than 15% of total At-Home Solutions revenue and that the company's focus on compliance is an advantage in an environment focused on reducing fraud.

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CEO Jason Hollar stated that the majority of the remaining $200-$300 million gross tariff cost would be mitigated through pricing, but only after significant non-pricing actions were exhausted. He emphasized a collaborative approach with customers, noting that price increases would not be uniform and would focus on low-margin, commoditized products sourced from regions like China that are difficult to resource elsewhere.

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CEO Jason Hollar clarified that of the one-third of GMPD revenue from Cardinal-branded products, about half is sourced from North America, which is split evenly between the U.S. and Mexico. He stated that while the company has the capability to manufacture up to 50% of its branded products in the U.S., a rapid shift is constrained by cost, capacity, and regulatory hurdles. He noted that significant, widespread tariffs would force resourcing, but it's too early to accelerate major investment decisions given the uncertainty.

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CEO Jason Hollar characterized the competitive environment as 'competitive and stable.' He downplayed the significance of the lost VA contracts, describing the business as relatively low-margin with minimal attachment of high-value Cardinal brand products, framing it as part of normal customer rotation in the industry.

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EVP & CFO Jon Leon declined to provide a detailed guidance bridge due to the active divestiture but confirmed stranded cost assumptions. He clarified the balance sheet figure is an accounting estimate and unrelated to valuation. For cash flow, Leon outlined the key components (EBITDA, CapEx, interest), suggesting a free cash flow in the $60-70 million range for the year.

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Executive Edward Pesicka revealed the sale process was initiated after receiving multiple inbound inquiries for the P&HS asset. He stated that post-transaction, the focus would be on debt reduction and integrating Rotech. On synergies, Pesicka explained that the deal's delay allowed for more planning, leading to confidence in achieving greater savings faster than initially projected, with an acceleration expected in the second half of the first full year.

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Executive Edward Pesicka stated that no significant incremental capital is required to take advantage of the tariffs, citing a large 2020 investment in their glove factory and available capacity at U.S. facilities. CFO Jonathan Leon clarified that the increased costs were from both shipping, including ocean and ground freight, as well as higher storage costs to manage inventory fluctuations.

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CEO Seth Blackley expressed high confidence in the Q1 2026 launch date, explaining the timeline is a strategic choice to be disciplined, ensuring all enhanced partnership elements are in place and data exchange processes are perfected. He framed it as a "slow down to speed up" approach to enable faster expansion to other states later.

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Executive Seth Blackley stated that the competitive landscape has not changed significantly. He asserted that Evolent's offerings, particularly in oncology, are unique and that win rates have remained consistent despite the new contract structure. He cited the doubling of the weighted sales pipeline as evidence of strong demand and competitive differentiation.

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CFO John Johnson reiterated the company's commitment to a 20%+ annual EBITDA growth target off the 2025 base but declined to comment specifically on 2026, emphasizing the current focus on rebuilding trust with an achievable 2025 outlook. He confirmed the MA headwind impacts both Performance Suite and Technology and Services, affecting some mature-margin risk contracts as well as fee-based clients.

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John Johnson acknowledged it is a negotiation but emphasized that the request is based on 'incontrovertible' data related to population health changes beyond Evolent's control. He expressed confidence that the company's long-term partnership approach would facilitate a successful outcome. He also noted the negotiations involve both payers from the prior increase and others.

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CEO Dan Burton acknowledged the headwinds are likely multi-year and broke down the 2026 growth components, suggesting a potential slight revenue decline for the year. He noted a headwind from lower dollar-based retention (now in the low 90s) and slightly down services revenue would be partially offset by new client additions and strong double-digit growth in the applications business. He expects the platform migration headwind to dissipate by mid-2026, enabling a return to growth. CFO Jason Alger reiterated the company's focus on profitability.

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CEO Dan Burton detailed several factors driving the anticipated H2 ramp. These include revenue from delayed late-stage deals in Life Sciences and Health Information Exchanges (HIEs) being recognized in the second half, revenue push-outs from increased scope and complexity in ongoing HIE implementations, and the natural lag between Q1 and Q2 bookings converting to revenue, which will primarily materialize in H2 2025.

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CEO Dan Burton confirmed the pricing model is shifting to be more modular and consumption-based, enhancing the client value proposition. COO Dan LeSueur added that Ignite's architecture lowers the barrier to entry for adding new applications. Burton expressed confidence in app adoption because it is already happening, which has helped maintain a strong dollar-based retention rate. He also noted the significant runway for growth, as the average platform client has only adopted one or two apps from their extensive portfolio.

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CEO Dan Burton provided a positive update, stating that Health Catalyst's contract was successfully transferred to the new party acquiring Steward's assets, as Health Catalyst was deemed a critical partner. He confirmed they received full repayment of all outstanding receivables. CFO Jason Alger added that they expect to continue recognizing revenue from the ongoing contract.

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CEO Wendy Barnes responded that it was too early to definitively track volume flow from Rite Aid closures but noted grocer retailers have anecdotally reported increased traffic. On CommunityLink, she called it the 'right answer' for independents, confirming that participating pharmacies have seen meaningfully higher profitability. She stated GoodRx will increase marketing to grow the program, which also gives independents access to ISP and brand discounts.

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CEO Wendy Barnes responded that it is too early to determine the full impact of volume shifts from Rite Aid, though some grocer partners have seen increased traffic. She expressed strong support for the CommunityLink program, stating that early adopters have seen meaningfully improved profitability. She confirmed GoodRx will increase marketing to grow the program, which gives independents access to better economics and brand drug discounts via ISP.

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CEO Wendy Barnes confirmed this is a key strategic focus. She explained that manufacturer programs embedded on the GoodRx platform see a significant performance lift due to high consumer trust and traffic. She also noted an opportunity to better leverage their telehealth partnership to create a more comprehensive service that includes both the provider visit and the prescription fulfillment, aligning with the direct-to-consumer model.

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CEO Wendy Barnes confirmed this is a key strategic focus. She stated that programs embedded on the GoodRx platform see a significant performance lift compared to standalone manufacturer sites due to GoodRx's brand trust and consumer traffic. She also noted an opportunity to better leverage their telehealth partnership to create a more comprehensive service that includes both the provider visit and the prescription fulfillment.

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Interim CEO Scott Wagner declined to provide specific metrics for an individual retailer but stated that GoodRx is working with Kroger and driving views to them within its platform. He characterized the early-stage KPIs as being where they expected and expressed hope to bring more advanced retail capabilities to the partnership.

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CEO Parth Mehrotra expressed confidence in the sustainability of Privia's model, stating they have been positioned for the current environment for years. He reiterated the importance of their disciplined approach to value-based care. Given the strong sales momentum and performance, he sees no reason why the company would not continue to target 20% EBITDA growth into 2026, noting they have exceeded that target in 2024 and are on track to do so again in 2025.

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CEO Parth Mehrotra stated that while the company doesn't guide by program, the goal for any capitated contract is to achieve a positive contribution margin. He reiterated that Privia does not believe taking full risk is necessary to succeed in Medicare Advantage and prefers a shared-risk model. He does not expect a significant ramp-up in capitation unless payers offer contracts with a fair risk-reward payment.

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CEO Parth Mehrotra stated that the company's strategy is independent of the political administration, having operated successfully through three different ones. He emphasized that Privia's model of supporting small, community-based providers is on the 'right side of history' and aligns with bipartisan goals. He noted CMS has been consistent in supporting MSSP and expects that to continue, so nothing fundamentally changes for Privia.

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CEO & Director Brian Tyler explained that major recent biosimilar launches like HUMIRA and STELARA were in the Part D channel and not material to the bottom line. He highlighted that the Part B channel is most effective for McKesson and expressed excitement for future opportunities in retina, though the Prism acquisition is very recent. EVP & CFO Britt Vitalone added that biosimilars are viewed as a steady, long-term contributor rather than a source of material quarterly gains.

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CEO Brian Tyler noted that McKesson provides a range of access solutions and expects to benefit as more patients become clinically appropriate for GLP-1s, adding that the cash-pay component is currently small. CFO Britt Vitalone confirmed they support all major GLP-1 products and see strong momentum carrying into fiscal 2026. The overall growth outlook blends these various market dynamics.

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CEO Brian Tyler asserted that oncology remains a central growth pillar and is not tapped out. He explained the PRISM deal's timing was a result of disciplined M&A—finding the right asset at the right valuation that fit their strategy. He noted they can leverage their deep experience in specialty distribution, GPO services, and business support to build an analogous platform for retina care.

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CFO Britt Vitalone acknowledged the oncology market has grown beyond the previously stated $55 billion, partly due to new areas like cell and gene therapy. He noted that while McKesson serves other specialties, the focus remains on oncology due to the robust drug innovation pipeline. He explained that adding providers is a key growth driver, as scale creates a virtuous cycle of better buying power and enhanced clinical capabilities, which in turn attracts more providers.

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EVP & CFO James Cleary addressed the tax question, stating that the new tax bill will provide some incremental benefits for Cencora, as it does for many companies, which will factor into its consolidated effective tax rate moving forward. The first part of the question regarding the outpatient rule was not addressed before the call moved to the next question.

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CEO Bob Mauch explained the increased focus was to better communicate Cencora's broad positioning for specialty growth across all sites of care, not just community practices. He clarified it was not due to a specific recent event but an effort to highlight the company's comprehensive strategy for supporting health systems.

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CEO Robert Mauch expressed confidence that Retina Consultants of America (RCA) is the leading retina MSO, citing its superior management, clinical excellence, and research network as key differentiators. He acknowledged that competitors may follow a similar strategy but stated Cencora is very happy with its chosen partners.

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CFO Doug Garis stated that while the company is booking significant new ACV that will convert to revenue in 2026, they prefer to see a few more quarters of stable core performance before providing a 2026 framework. Regarding the 2025 guidance, Garis noted it was the company's first 'beat and raise' and they are aiming for a high 'say-do' ratio, while confirming they are internally planning to perform near the top end of the guided range.

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CFO Doug Garis explained that while the company has a long-term growth plan, they are taking a cautious approach and want to see a few more quarters of core business stability before providing a more aggressive outlook for 2026. Regarding the H2 2025 guidance, Garis acknowledged it was their first 'beat and raise' and stated that while they want to maintain a high 'say-do ratio,' the company is internally planning to perform near the top end of the guided range.

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CEO Andrew Dudum indicated the hormone therapy launch is expected 'relatively soon' and will include a wide range of treatments delivered through both Hims & Hers' and partners' facilities. CFO Yemi Okupe confirmed the necessary investments are embedded in guidance and attributed the core revenue softness to the deliberate rotation away from the lower-retention on-demand sexual health business, a multi-quarter transition expected to be accretive by 2026.

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CEO Andrew Dudum stated that the company does not disclose transition percentages. He confirmed discussions with Novo focused on the appropriate, clinically necessary use of personalization, not on imposing limits. He strongly affirmed that a 'very strong wall' exists between the corporate entity and affiliated provider groups, ensuring independent clinical judgment.

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CFO Yemi Okupe did not provide a specific quarterly revenue breakdown but emphasized that the core, non-GLP-1 specialties remain durable and are a key driver of subscriber growth. CEO Andrew Dudum noted that while partnerships with branded pharma are not off the table, they are currently impractical due to unreliable drug supply chains at Hims & Hers' scale and unstable reimbursement rates, which conflict with the company's commitment to price transparency.

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CEO Andrew Dudum clarified that the 10,000-user figure was from a specific study, not the total on personalized doses. He expressed confidence that personalizing doses to mitigate side effects is a clear clinical need that falls within the compounding exemption, even post-shortage. CFO Yemi Okupe explained that the acquired Medisource pharmacy already has GLP-1 capabilities and future investments will focus on expanding capacity and automation, with CapEx being diversified across multiple personalization initiatives.

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CFO Steve Oreskovich confirmed the wins were all competitive takeaways and represented a mix of health system and large ambulatory clients. He explained that their rapid onboarding, which was much faster than the typical 6-12 month timeline, led to an upside surprise in Q2 revenue and was a key reason for the full-year guidance increase.

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CFO Mala Murthy explained that investments are already underway, funded by the adjusted EBITDA reduction announced with the Uplift acquisition. These investments focus on scaling talent and back-end operational capabilities like billing. She reiterated that the revenue ramp will occur over a 6-12 month period and that the company needs more proof points before providing a detailed 2026 outlook, promising updates on future calls.

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CFO Mala Murthy stated that the second-half margin ramp will be driven by revenue growth from international expansion and new insurance initiatives, along with a more pronounced pullback in Q4 advertising spend compared to last year. CEO Chuck Divita confirmed UpLift uses a visit-based, in-network pricing model and clarified that while it serves a different market than the Integrated Care mental health offering, it aligns with the company's overarching strategic focus on virtual mental health.

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CEO Chuck Divita identified bundled services as having the most traction, with weight management being a significant source of interest and growth. Regarding GLP-1s, he noted that employers are still developing strategies and asserted that employers should have the flexibility to design benefits for their employees without being 'held hostage' by PBM rebate structures.

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CFO Balaji Gandhi clarified that volume fluctuations are typically tied to the number of days in a calendar period and weather, not utilization events like flu season. He added that while the new patient bill pay product is expected to drive future volume growth, its impact was not material in Q1.

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Executive Balaji Gandhi stated that while Phreesia is monitoring macro trends, there is nothing significant to call out impacting the business. CEO Chaim Indig reiterated that the capital allocation philosophy remains unchanged, prioritizing investments in profitable, durable growth, whether organic or inorganic.

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Executive Balaji Gandhi confirmed the trend has remained consistent. He stated that the total dollar value associated with new average healthcare services client contracts, including all three revenue lines, continues to trend approximately 20% larger than at the same time last year.

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Executive Balaji Gandhi clarified that the company has never set a 20% growth target and will provide updates on fiscal 2026 in December. He noted that Network Solutions was the company's original product line and its growth has been propelled by the significant expansion of the patient visit network, which now attracts over 100 brands.

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CEO Steven Sell confirmed the 29,000 member exit at year-end. He stated the goal is to move members to risk as quickly as possible under appropriate economic terms. The favorable rate notice improves the economics for both the class of '26 and for graduating the class of '25 off their care coordination glide path, but it is too early to provide specifics.

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CEO Steven Sell explained that the decision to move to full risk is made mutually and collaboratively with the payor partner. He noted that payors' need for effective primary care models provides flexibility. The risk structure for the 2026 class will be determined situationally, based on market dynamics, payor bids, and the final 2026 MA rate notice.

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CEO Steven Sell addressed the strategy, stating that while the glide path is a prudent adaptation to the current environment, the company remains committed to full-risk, value-based care as the ultimate goal for delivering the best outcomes. He emphasized the need for aligned economics and data access to succeed. CFO Jeffrey Schwaneke handled the accounting question, confirming that these new contract terms could indeed lead to net revenue recognition instead of gross.

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Excluding the one large client, the business is expected to grow mid-single digits in 2025. The company is cautious about 2026 guidance but stated the long-term goal is mid-to-high single-digit growth, with a focus on achieving a 'Rule of 70' (EBITDA margin + revenue growth). The next major contract renewals are in the next 12-24 months, and early discussions are underway to package more products and demonstrate increased value.

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The take rate decline is primarily due to the impact of one large client, and the rate appears to be stabilizing. The company has not seen significant disruptions from issues like IV shortages. The Vision 2030 plan focuses on core business investment and new product growth, funded by significant cost efficiencies (10-20% of cost base over time) without materially changing the cost structure or strong margins.

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Revenue yield volatility is attributed to client/program mix shifts and temporary credits, not contract changes, and is expected to stabilize. The company has flexibility with its capital structure and is in active dialogue with investors but is not being forced into hasty decisions. The long-term growth algorithm remains the goal, though the timeline is extended.

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The executive agreed that challenges in the Medicare Advantage space do drive demand for their solutions, as clients need technology partners to help manage payment timelines and reimbursement complexity. While they are watching the trend closely, the overall macro outlook is considered balanced, and it reinforces the value proposition of their services.

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Executives stated that Providence revenue is expected in the second half of 2024, with investments beginning in Q1. The pediatrics attrition is expected around mid-year. The Philippines operation, with over 2,000 employees, is a key area for future expansion and margin improvement as it matures.

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