v3.25.1
Segment Information
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Segment Information

18. Segment Information

The Company's CODM is its Chief Executive Officer, who evaluates the performance of our segments and allocates resources based on segment EBITDA. Segment EBITDA is used as the key profitability measure when we set our annual operating plan for each segment, is the metric with which our CODM assesses segment results, and is a key component of our annual variable compensation plans. Segment EBITDA is commonly used as an analytical indicator within the health care industry and is utilized in the evaluation of segment operating performance as it is a profit measure that is generally within the control of the operating segments.

For all segments, the CODM uses segment EBITDA in the annual budgeting and monthly forecasting process. The CODM considers actual-to budget and actual-to current forecast variances for segment EBITDA on a monthly basis for evaluating performance of each segment and making decisions about allocating capital and other resources to each segment.

Segment amounts exclude certain expenses not specifically identifiable to the segments for functions performed in a centralized manner, which include accounting, finance, human resources, legal, information technology, corporate office support and overall corporate management. Segment assets and capital expenditures are not provided to the Company’s CODM and, therefore, are not disclosed.

The following tables set forth information about the Company’s reportable segments, along with the items necessary to reconcile the segment information to the totals reported in the Company’s consolidated statements of operations as follows (in thousands):

 

 

For the Year Ended December 31, 2024

 

 

Pharmacy Solutions

 

 

Provider Services

 

 

Total Segments

 

Product revenue

$

8,754,282

 

 

$

—

 

 

$

8,754,282

 

Service revenue

 

—

 

 

 

1,317,932

 

 

 

1,317,932

 

Cost of drugs

 

7,368,426

 

 

 

—

 

 

 

7,368,426

 

Cost of services

 

—

 

 

 

797,286

 

 

 

797,286

 

Other direct costs (1)

 

640,075

 

 

 

—

 

 

 

640,075

 

Segment selling, general, and administrative expenses (2)

 

462,219

 

 

 

340,034

 

 

 

802,253

 

Segment depreciation and amortization expense (3)

 

111,103

 

 

 

24,675

 

 

 

135,778

 

Segment EBITDA

$

394,665

 

 

$

205,287

 

 

$

599,952

 

 

 

For the Year Ended December 31, 2023

 

 

Pharmacy Solutions

 

 

Provider Services

 

 

Total Segments

 

Product revenue

$

6,522,450

 

 

$

—

 

 

$

6,522,450

 

Service revenue

 

—

 

 

 

1,168,566

 

 

 

1,168,566

 

Cost of drugs

 

5,291,630

 

 

 

—

 

 

 

5,291,630

 

Cost of services

 

—

 

 

 

711,304

 

 

 

711,304

 

Other direct costs (1)

 

549,086

 

 

 

—

 

 

 

549,086

 

Segment selling, general, and administrative expenses (2)

 

426,521

 

 

 

310,747

 

 

 

737,268

 

Segment depreciation and amortization expense (3)

 

115,749

 

 

 

22,897

 

 

 

138,646

 

Segment EBITDA

$

370,962

 

 

$

169,412

 

 

$

540,374

 

 

 

For the Year Ended December 31, 2022

 

 

Pharmacy Solutions

 

 

Provider Services

 

 

Other

 

 

Total Segments

 

Product revenue

$

5,264,423

 

 

$

—

 

 

$

—

 

 

$

5,264,423

 

Service revenue

 

—

 

 

 

1,098,383

 

 

 

274,650

 

 

 

1,373,033

 

Cost of drugs

 

4,142,064

 

 

 

—

 

 

 

—

 

 

 

4,142,064

 

Cost of services

 

—

 

 

 

678,181

 

 

 

238,959

 

 

 

917,140

 

Other direct costs (1)

 

493,340

 

 

 

—

 

 

 

—

 

 

 

493,340

 

Segment selling, general, and administrative
   expenses (2)

 

398,080

 

 

 

288,762

 

 

 

16,841

 

 

 

703,683

 

Segment depreciation and amortization expense (3)

 

113,532

 

 

 

22,478

 

 

 

2,144

 

 

 

138,154

 

Segment EBITDA

$

344,472

 

 

$

153,918

 

 

$

19,745

 

 

$

518,135

 

 

(1)
Other direct costs primarily includes direct labor costs, delivery costs, insurance, and depreciation and amortization expense that relates to revenue-generating assets.
(2)
Segment selling, general, and administrative expense includes indirect labor costs, depreciation and amortization, insurance, rent, lease, supplies, professional services, maintenance, repairs, utilities, and communications expense.
(3)
Total segment depreciation and amortization expense is presented in other direct costs, costs of services, and segment general and administrative expenses, based on the associated asset.

 

 

For the Years Ended December 31,

 

 

2024

 

 

2023

 

 

2022

 

Reconciliation of loss:

 

 

 

 

 

 

 

 

 

Total Segment EBITDA

 

$

599,952

 

 

$

540,374

 

 

$

518,135

 

Segment depreciation and amortization

 

 

135,778

 

 

 

138,646

 

 

 

138,154

 

Expenses not allocated at segment level:

 

 

 

 

 

 

 

 

 

Selling, general, and administrative expenses

 

 

329,854

 

 

 

321,692

 

 

 

198,084

 

Depreciation and amortization

 

 

26,366

 

 

 

21,911

 

 

 

22,179

 

Goodwill impairment loss

 

 

—

 

 

 

—

 

 

 

40,856

 

Loss on extinguishment of debt

 

 

12,726

 

 

 

—

 

 

 

—

 

Interest expense, net

 

 

190,546

 

 

 

271,899

 

 

 

199,813

 

Income tax benefit

 

 

(26,387

)

 

 

(31,508

)

 

 

(390

)

Net loss

 

$

(68,931

)

 

$

(182,266

)

 

$

(80,561

)