Premier, Inc., a leading technology-driven healthcare improvement company, recently held an earnings call to discuss the financial results for the second quarter of fiscal year 2025. Here are the main takeaways: 

• Revenue: Premier experienced a 14% decline in revenue compared to the same period last year. The Supply Chain Services segment saw an 11% drop, and the Performance Services segment declined by 19%. According to the report, the drop in Performance Services was attributed a “lower demand in consulting services and unfavorable product mix in applied sciences.” However, there was some positive momentum in areas like supply chain co-management and GPO fee share, which helped cushion the overall decline.
• Profitability: Premier’s adjusted EBITDA decreased by 48%, and its adjusted earnings per share (EPS) fell by 51% - both decreases were primarily driven by the revenue shortfall. Despite this, Premier’s repurchase of 28 shares of Class A common stock provided some benefit for the EPS, helping to offset some of the challenges.
• Financial Position: Premier remains in a strong financial position with $193.7 million in operating cash flow and $73.9 million in free cash flow. The company also repurchased 29 million shares and returned $42.4 million to shareholders in the form of dividends, demonstrating its continued commitment to delivering value to investors.
• Guidance for FY25: While the company has maintained its overall revenue guidance for the fiscal year, it has made slight adjustments for the Supply Chain Services segment. Notably, Premier raised its adjusted EPS guidance by $0.08, indicating a more optimistic outlook in that area.

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