v3.25.2
SEGMENTS
 12 Months Ended
Jun. 30, 2025
Segment Reporting [Abstract]  
SEGMENTS
(18) SEGMENTS
The Company delivers its solutions and manages its business through two reportable business segments, the Supply Chain Services segment and the Performance Services segment. The Supply Chain Services segment includes the Company’s GPO, supply chain co-management, and purchasing and payment solutions. The Performance Services segment consists of the Company’s technology and services platform. The Company has identified these segments based on the products and services provided.
Beginning in fiscal year 2025, the Company’s purchasing and payment solutions platform is reported as a component of the Supply Chain Services segment. For comparability purposes, fiscal years 2024 and 2023 financial measures are presented with this platform as a component of Supply Chain Services.
The Company’s Chief Executive Officer serves as the Company’s chief operating decision maker (“CODM”). The CODM uses Segment Adjusted EBITDA (a financial measure not determined in accordance with generally accepted accounting principles (“Non-GAAP”)) as its primary measure of profit or loss to assess segment performance and to determine the allocation of resources. The CODM also uses Segment Adjusted EBITDA to facilitate the comparison of the segment operating performance on a consistent basis from period to period. The Company defines Segment Adjusted EBITDA as the segment’s net revenue less cost of revenue and operating expenses directly attributable to the segment excluding depreciation and amortization, amortization of purchased intangible assets, merger and acquisition-related expenses, and non-recurring or non-cash items. Operating expenses directly attributable to the segment include expenses associated with sales and marketing, general and administrative, and product development activities specific to the operation of each segment. General and administrative corporate expenses that are not specific to a particular segment are not included in the calculation of Segment Adjusted EBITDA. Segment Adjusted EBITDA also excludes any income and expense that has been classified as discontinued operations and operating income from revenues sold to OMNIA in connection with the sale of non-healthcare GPO member contracts, less royalty fees retained.
The Company has revised the definition for Segment Adjusted EBITDA from the definition reported in the 2024 Annual Report to exclude the operating income from revenues sold to OMNIA in connection with the sale of non-healthcare GPO member contracts, less royalty fees retained. For comparability purposes, fiscal years 2024 and 2023 Non-GAAP financial measures are presented based on the current definition.
For more information on Segment Adjusted EBITDA and the use of Non-GAAP financial measures, see “Our Use of Non-GAAP Financial Measures” within Item 7. Management's Discussion and Analysis of Financial Condition and Results of Operations.
The CODM does not use segment assets or significant segment expenses to assess performance, make strategic decisions, or allocate resources. Segment assets and significant segment expenses are therefore not disclosed.
Segment information and a reconciliation of income before income taxes to unaudited Segment Adjusted EBITDA, a Non-GAAP financial measure, is as follows (in thousands):
Year Ended June 30,
Supply Chain Services 202520242023
Net revenue (a)
$631,039 $689,368 $666,761 
Other segment items (b)
304,137 279,699 193,070 
Segment Adjusted EBITDA (c)
$326,902 $409,669 $473,691 
Performance Services
Net revenue (a)
$381,608 $446,641 $428,576 
Other segment items (b)
320,916 332,796 295,899 
Segment Adjusted EBITDA (c)
$60,692 $113,845 $132,677 
Segment Adjusted EBITDA (c):
Supply Chain Services (a)
$326,902 $409,669 $473,691 
Performance Services (a)
60,692 113,845 132,677 
Total Segment Adjusted EBITDA (c)
$387,594 $523,514 $606,368 
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(a)Includes intersegment revenue which is eliminated in consolidation.
(b)For each reportable segment, other segment items includes cost of revenue and selling, general, and administrative expenses, excluding depreciation and amortization, research and development, and other miscellaneous expense (income).
(c)For comparability purposes, prior year Non-GAAP financial measures are presented based on the current definition.
Year Ended June 30,
202520242023
Income before income taxes$98,049 $146,521 $251,860 
Equity in net loss (income) of unconsolidated affiliates (a)
(11,972)295 (16,068)
Interest expense, net
17,223 662 14,647 
Other income, net
(102,184)(20,832)(6,306)
Operating income1,116 126,646 244,133 
Depreciation and amortization79,442 81,728 85,691 
Amortization of purchased intangible assets38,189 47,026 47,561 
Stock-based compensation (b)
23,700 23,876 14,354 
Acquisition- and disposition-related expenses6,943 12,612 17,095 
Strategic initiative and financial restructuring-related expenses13,007 2,850 13,831 
Operating income from revenues sold to OMNIA(62,469)(55,283)— 
Deferred compensation plan expense (c)
4,603 8,769 5,422 
Impairment of assets144,481 140,053 54,422 
Corporate and other expenses
138,582 135,237 123,859 
Total Segment Adjusted EBITDA (d)
$387,594 $523,514 $606,368 
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(a)Refer to Note 5 - Investments for further information.
(b)Represents non-cash employee stock-based compensation expense and stock purchase plan expense of $0.5 million for the year ended June 30, 2025 and $0.6 million for each of the years ended June 30, 2024 and 2023.
(c)Represents changes in deferred compensation plan obligations resulting from realized and unrealized gains and losses and dividend income on deferred compensation plan assets.
(d)For comparability purposes, prior year Non-GAAP financial measures are presented based on the current definition.
The following table presents disaggregated revenue by reportable business segment and underlying source (in thousands):
Year Ended June 30,
202520242023
Net revenue:
Supply Chain Services
Net administrative fees$556,328 $624,168 $615,040 
Software licenses, other services and support74,711 65,200 51,721 
Total Supply Chain Services (a)
631,039 689,368 666,761 
Performance Services
Software licenses, other services and support
SaaS-based products subscriptions155,458 179,601 187,618 
Consulting services68,237 92,560 80,292 
Software licenses86,731 82,073 72,060 
Other (b)
71,182 92,407 88,606 
Total Performance Services (a)
381,608 446,641 428,576 
Net revenue$1,012,647 $1,136,009 $1,095,337 
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(a)Includes intersegment revenue that is eliminated in consolidation. Intersegment revenue is not separately identified in Segments as the amounts are not material.
(b)Includes data license and other miscellaneous revenue from the Company’s technology and services platform as well as revenue from Contigo Health.