Form 8-K - Current report

Share Name	Share Symbol	Market	Type
Premier Inc	NASDAQ:PINC	NASDAQ	Common Stock

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	-0.27	-1.50%	17.77	17.29	18.23	18.13	17.695	18.09	730,797	01:00:00

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

Pursuant to Section 13 or 15(d)

of the Securities Exchange Act of 1934

Date of Report (Date of Earliest Event Reported): February 4, 2025

Premier, Inc.

(Exact name of registrant as specified in its charter)


Delaware	001-36092	35-2477140
(State or other jurisdiction of incorporation)	(Commission File Number)	(I.R.S. Employer Identification No.)

13034 Ballantyne Corporate Place

Charlotte, NC 28277

(Address of principal executive offices) (Zip Code)

(704) 357-0022

(Registrant’s telephone number, including area code)

Not Applicable

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

☐	Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

☐	Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

☐	Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

☐	Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

Securities registered pursuant to Section 12(b) of the Act:

Title of each class

Trading

Symbol

Name of each exchange

on which registered

Class A Common Stock, $0.01 Par Value

PINC

NASDAQ Global Select Market

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933 (§230.405) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2).

Emerging growth company ☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Item 2.02.

Results of Operations and Financial Condition

On February 4, 2025, Premier, Inc. (the “Company”) issued a press release reporting the financial results of the Company for the three and six months ended December 31, 2024. A copy of the press release is attached to this report as Exhibit 99.1 and is incorporated herein by reference.

As discussed in the press release, the Company held a conference call and webcast on February 4, 2025. Supplemental slides referenced during the conference call and webcast were available on the Company’s website for viewing by participants. A transcript of the conference call and webcast together with the supplemental slides are attached as Exhibits 99.2 and 99.3, respectively, to this report and are incorporated herein by reference.

Item 7.01.

Regulation FD Disclosure

As noted in Item 2.02 of this report, the Company held a conference call and webcast on February 4, 2025, to discuss the Company’s financial results for the three and six months ended December 31, 2024, as reported in the Company’s February 4, 2025 press release. A copy of the press release, which contains additional information regarding how to access the conference call and webcast and how to listen to a recorded playback, is attached as Exhibit 99.1 to this report and is incorporated herein by reference. A transcript of the conference call and webcast together with supplemental slides referenced during the conference call and webcast are attached as Exhibits 99.2 and 99.3, respectively, to this report and are incorporated herein by reference.

* * * *

The information in this report under Items 2.02 and 7.01, including Exhibits 99.1, 99.2 and 99.3, shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, or incorporated by reference in any filing by the Company under the Securities Act of 1933, as amended, or the Exchange Act except as shall be expressly set forth by specific reference in such a filing.

Item 9.01.

Financial Statements and Exhibits

(d) Exhibits


Exhibit No.		Description

99.1		Press release of Premier, Inc. dated February 4, 2025.

99.2		Transcript of fiscal 2025 second quarter earnings call of Premier, Inc.

99.3		Supplemental slides referenced during fiscal 2025 second quarter earnings call of Premier, Inc.

104		Cover Page Interactive Data File (the cover page XBRL tags are embedded within the Inline XBRL document).

SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	Premier, Inc.

	By:	/s/ Michael J. Alkire
		Name: Michael J. Alkire
		Title: President and Chief Executive Officer

Date: February 5, 2025

Exhibit 99.1

LOGO

Premier, Inc. Reports Fiscal-Year 2025 Second-Quarter Results

•

Total net revenue of $240.3 million (Total net revenue excluding Contigo Health* of $232.2 million)

•

GAAP net loss from continuing operations of $45.8 million, or $(0.60) per fully diluted share, which includes a $126.8 million impairment charge to goodwill related to the company’s data and technology business in the Performance Services segment

•

Adjusted earnings per share excluding Contigo Health* of $0.27

•

Net cash provided by operating activities from continuing operations of $193.7 million and free cash flow* of $73.9 million for the first six months of fiscal 2025

•

Reaffirming guidance midpoints for total net revenue excluding Contigo Health and adjusted EBITDA; increasing the midpoint of adjusted earnings per share guidance by $0.08 ^[1][2]

CHARLOTTE, N.C., February 4, 2025 - Premier, Inc. (NASDAQ: PINC), a leading technology-driven healthcare improvement company, today reported financial results for the fiscal-year 2025 second quarter ended December 31, 2024.

On October 1, 2024, the company announced that it had divested the S2S Global direct sourcing business. As such, and unless stated otherwise, all results presented in the following release reflect those of continuing operations. In addition, as certain components of the divestiture process for the Contigo Health business remain ongoing, results presented in this release will continue to include contributions from that business. As such, a table has been included at the end of this release that reconciles the impact of the Contigo Health business on certain financial measures in the quarter.

“Our overall revenue and profitability for the first half of fiscal 2025 were in line with our expectations resulting from better than expected results in our Supply Chain Services segment,” said Michael J. Alkire, Premier’s President and CEO. “Importantly, we are reaffirming the midpoints of our consolidated fiscal 2025 revenue and adjusted EBITDA guidance, despite challenges in our Performance Services segment. We are also increasing our adjusted earnings per share guidance to reflect the favorable impact of the additional $200 million share repurchase completed in early January, consistent with our commitment to returning capital to stockholders.”

Consolidated Financial Highlights of Continuing Operations


	Three Months Ended December 31,								Six Months Ended December 31,
(in thousands, except per share data)	2024			2023		% Change			2024		2023		% Change
Net revenue:
Supply Chain Services:
Net administrative fees	$	131,417		$	150,470		(13	%)	$	264,042	$	300,356		(12	%)
Software licenses, other services, and support		17,329			15,752		10	%		36,092		29,142		24	%

Total Supply Chain Services		148,746			166,222		(11	%)		300,134		329,498		(9	%)
Performance Services		91,520			113,649		(19	%)		188,274		219,399		(14	%)
Performance Services excluding Contigo Health		83,475			103,022		(19	%)		172,583		198,615		(13	%)

Net revenue	$	240,266		$	279,871		(14	%)	$	488,408	$	548,897		(11	%)
Net revenue excluding Contigo Health*	$	232,221		$	269,244		(14	%)	$	472,717	$	528,113		(10	%)

Net (loss) income from continuing operations	$	(45,837	)	$	50,448		(191	%)	$	27,103	$	92,217		(71	%)
Net (loss) income from continuing operations attributable to stockholders	$	(56,629	)	$	51,884		(209	%)	$	15,759	$	96,004		(84	%)
Diluted (loss) earnings per share from continuing operations attributable to stockholders	$	(0.60	)	$	0.43		(240	%)	$	0.16	$	0.80		(80	%)

Consolidated Non-GAAP Financial Highlights of Continuing Operations


	Three Months Ended December 31,									Six Months Ended December 31,
(in thousands, except per share data)	2024			2023			% Change			2024			2023			% Change
*NON-GAAP FINANCIAL MEASURES:**
Adjusted EBITDA:
Supply Chain Services	$	73,740		$	96,532			(24	%)	$	151,251		$	197,919			(24	%)
Performance Services		9,123			31,205			(71	%)		24,072			54,135			(56	%)

Total segment adjusted EBITDA		82,863			127,737			(35	%)		175,323			252,054			(30	%)
Corporate		(32,773	)		(31,318	)		(5	%)		(62,805	)		(62,327	)		(1	%)

Adjusted EBITDA	$	50,090		$	96,419			(48	%)	$	112,518		$	189,727			(41	%)
Adjusted EBITDA excluding Contigo Health	$	52,066		$	97,757			(47	%)	$	116,721		$	193,795			(40	%)
Adjusted net income	$	23,837		$	60,726			(61	%)	$	59,040		$	116,891			(49	%)

Adjusted earnings per share (EPS)	$	0.25		$	0.51			(51	%)	$	0.60		$	0.97			(38	%)
Adjusted EPS excluding Contigo Health	$	0.27		$	0.53			(49	%)	$	0.65		$	1.02			(36	%)

These are non-GAAP financial measures. Refer to “Premier’s Use and Definition of Non-GAAP Measures” below and the supplemental financial information at the end of this release for information on the company’s use of non-GAAP measures and a reconciliation of reported GAAP results to non-GAAP results.

Fiscal 2025 Guidance

Certain statements in this release, including without limitation, those in this section, are forward-looking statements. For additional information regarding the use and limitations of such statements, refer to “Cautionary Note Regarding Forward-Looking Statements” below.

Based on actual results for the first six months of fiscal 2025 and the current outlook for the remainder of the fiscal year, the company is updating its guidance to the following:


Guidance Metric	Fiscal 2025 Guidance Range ^{[1] [2]} (as of February 4, 2025)	Previous Fiscal 2025 Guidance Range ^{[1] [2]} (as of November 5, 2024)	Comments
Segment Net Revenue:
Supply Chain Services	$590 million to $630 million	$560 million to $610 million	Increased midpoint $25 million
Performance Services Excluding Contigo Health	$350 million to $380 million	$370 million to $410 million	Decreased midpoint $25 million

Total Net Revenue Excluding Contigo Health	$940 million to $1.01 billion	$930 million to $1.02 billion	No change to midpoint

Adjusted EBITDA	$237 million to $253 million	$235 million to $255 million	No change to midpoint

Adjusted Net Income	$119 million to $129 million	Not previously disclosed	New disclosure

Adjusted EPS	$1.26 to $1.34	$1.16 to $1.28	Increased midpoint $0.08

Diluted Weighted Average Shares	94 million to 96 million	Not previously disclosed	New disclosure

Fiscal 2025 guidance is based on the realization of the following key assumptions:

•

Net administrative fees revenue of $525 million to $545 million (previously: $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 24% to 26% (previously: 25% to 27%)

•

Cash income tax rate of less than 5%

•

Free cash flow^[1][2] of 45% to 55% of adjusted EBITDA^[1][2]

[1]

Adjusted EBITDA, adjusted net income, adjusted EPS and free cash flow presented in this financial guidance are forward-looking non-GAAP measures. Refer to “Premier’s Use and Definitions of Non-GAAP Measures” below for information on the company’s use of 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. Total Net Revenue Excluding Contigo Health is also a forward-looking non-GAAP measure. Refer to “Premier’s Use of Forward-Looking Non-GAAP Measures” below for additional explanation.

[2]	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.

Results of Operations for the Three Months Ended December 31, 2024

(As compared with the three months ended December 31, 2023)

GAAP net revenue of $240.3 million decreased 14% from $279.9 million in the prior-year period. Refer to the “Supply Chain Services” and “Performance Services” sections below for further discussion on the factors that impacted the net revenue of each segment during the quarter.

GAAP net loss from continuing operations of $45.8 million decreased 191% from net income from continuing operations of $50.4 million in the prior-year period primarily as a result of a $126.8 million impairment charge to goodwill related to the company’s data and technology business in the Performance Services segment in the current-year period and lower net revenue compared to the prior-year period, partially offset by a $17.6 million cash distribution received in the current-year period from a minority investment, as well as lower selling, general and administrative expenses, excluding the goodwill impairment, compared to the prior-year period.

GAAP diluted EPS from continuing operations of $(0.60) decreased 240% from $0.43 in the prior-year period due to the aforementioned drivers affecting GAAP net loss from continuing operations, partially offset by a decrease in the diluted weighted average shares outstanding as a result of share repurchases under the company’s $1 billion share repurchase authorization announced in February 2024 (“Share Repurchase Authorization”), further discussed below under “Return of Capital to Stockholders”.

Adjusted EBITDA of $50.1 million decreased 48% from $96.4 million in the prior-year period primarily due to a decrease in net administrative fees revenue as well as lower revenue in the Performance Services segment.

Adjusted net income of $23.8 million decreased 61% from $60.7 million in the prior-year period primarily as a result of the same factors that impacted adjusted EBITDA and a decrease in interest income due to lower levels of cash on hand, partially offset by a decrease in our effective income tax rate in the current-year period. Adjusted EPS of $0.25 decreased 51% from $0.51 in the prior-year period.

Segment Results

(For the fiscal second quarter of 2025 as compared with the fiscal second quarter of 2024)

Supply Chain Services

Supply Chain Services segment net revenue of $148.7 million decreased 11% from $166.2 million in the prior-year period primarily due to lower net administrative fees revenue, partially offset by higher software license, other services and support revenue.

Net administrative fees revenue of $131.4 million decreased 13% from $150.5 million in the prior-year period, primarily driven by the expected increase in the aggregate blended member fee share to the low-60% level in the quarter, partially offset by continued growth in member purchasing as a result of increased penetration of contract spend with existing members and from the recruitment and onboarding of new members.

Software license, other services and support revenue of $17.3 million increased 10% from $15.8 million in the prior-year period mainly driven by new agreements for the supply chain co-management business that were signed in the second half of fiscal 2024.

Segment adjusted EBITDA of $73.7 million decreased 24% from $96.5 million in the prior-year period largely due to the decrease in net administrative fees revenue and additional investments in the supply chain co-management business to support ongoing growth.

Performance Services

Performance Services segment net revenue of $91.5 million decreased 19% from $113.6 million in the prior-year period primarily due to lower demand in the consulting business and product mix in the applied sciences business.

Segment adjusted EBITDA of $9.1 million decreased 71% from $31.2 million in the prior-year period mainly due to the decrease in net revenue in the consulting and applied sciences businesses.

Liquidity and Cash Flows

As of December 31, 2024, cash and cash equivalents were $85.9 million compared with $125.1 million as of June 30, 2024, and the company’s five-year, $1.0 billion revolving credit facility had an outstanding balance of $100.0 million, of which the company repaid $65.0 million in January 2025.

Net cash provided by operating activities from continuing operations (“operating cash flow”) for the six months ended December 31, 2024 of $193.7 million increased from $15.5 million in the prior-year period mainly due to a decrease in cash taxes paid related to the sale of non-healthcare GPO operations in the prior-year period, cash received from the derivative lawsuit settlement of $57.0 million in the current-year period and a $17.6 million cash distribution received from a minority investment. These items were partially offset by higher performance-related compensation payments.

Net cash used in investing activities for the six months ended December 31, 2024 of $39.9 million decreased from the prior-year period primarily due to lower spending of internally developed software. Net cash used in financing activities for the six months ended December 31, 2024 was $178.7 million compared to net cash provided by financing activities for the six months ended December 31, 2023 of $295.0 million. The change in net cash used in financing was primarily driven by net proceeds from the sale of the company’s non-healthcare GPO operations of $602.3 million in the prior-year period and the use of $189.8 million (including commissions) for market repurchases of Class A common stock (“Common Stock”) in the current-year period under the company’s Share Repurchase Authorization. These uses of cash were partially offset by proceeds from the revolving credit facility of $100.0 million in the current-year period and payments of $215.0 million in the prior-year period.

Free cash flow for the six months ended December 31, 2024 was $73.9 million compared with $40.7 million in the prior-year period. The increase was mainly due to the same factors impacting operating cash flow as well as lower purchases of property and equipment and the timing of cash payments to OMNIA. Refer to “Premier’s Use and Definition of Non-GAAP Measures” below and the supplemental financial information at the end of this release for information on the company’s use of this and other non-GAAP financial measures and a reconciliation of reported GAAP results to non-GAAP results.

Return of Capital to Stockholders

In February 2024, the company announced that its Board of Directors (“Board”) approved the Share Repurchase Authorization and that it entered into an accelerated share repurchase transaction (the “ASR”). Under the ASR, in February 2024, the company received initial deliveries of an aggregate of 15.0 million shares of Common Stock. On July 11, 2024, as final settlement, the company received an additional 4.8 million shares of Common Stock, resulting in a total of 19.9 million shares repurchased under the ASR for a total of $400.0 million.

On August 20, 2024, the Board approved execution of $200.0 million of repurchases under the Share Repurchase Authorization. As of December 31, 2024, the Company had repurchased an aggregate of 9.2 million shares of Common Stock for $192.1 million in market transactions in addition to the ASR repurchases and the remaining amount of repurchases were completed on January 6, 2025.

During the first half of fiscal 2025, the company paid aggregate dividends of $42.4 million to holders of its Common Stock. On January 23, 2025, the Board declared a quarterly cash dividend of $0.21 per share, payable on March 15, 2025 to stockholders of record on March 1, 2025.

Conference Call and Webcast

Premier will host a conference call to provide additional detail around the company’s performance and outlook today at 8:00 a.m. ET. The call will be webcast live from the company’s website and, along with the accompanying presentation, will be available at the following link to our Event and Presentation page at https://investors.premierinc.com/overview/default.aspx: Premier Events. The webcast should be accessed 10 minutes prior to the conference call start time. A replay of the webcast will be available for one year following the conclusion of the live broadcast and will be accessible on the company’s website under Events and Presentations at https://investors.premierinc.com/overview/default.aspx.

For those parties who do not have internet access, the conference call may be accessed by calling one of the below telephone numbers and asking to join the Premier, Inc. call:


		Domestic participant dial-in number (toll-free):		(833) 953-2438
		International participant dial-in number:		(412) 317-5767

About Premier, Inc.

Premier, Inc. (NASDAQ: PINC) is a leading technology-driven healthcare improvement company, providing solutions to two-thirds of all healthcare providers in the U.S. Playing a critical role in the rapidly evolving healthcare industry, Premier unites providers, suppliers, payers and policymakers to make healthcare better with national scale, smarter with actionable intelligence and faster with novel technologies. Headquartered in Charlotte, N.C., Premier offers integrated data and analytics, collaboratives, supply chain solutions, consulting and other services in service of our mission to improve the health of communities. Please visit Premier’s news and investor sites on www.premierinc.com, as well as X, Facebook, LinkedIn, YouTube, Instagram and Premier’s blog for more information about the company.

Premier’s Use and Definition of Non-GAAP Measures

Premier uses EBITDA, adjusted EBITDA, segment adjusted EBITDA, adjusted net income, adjusted earnings per share, and free cash flow. These are non-GAAP financial measures that are not in accordance with, or an alternative to, GAAP, and may be different from non-GAAP financial measures used by other companies. We include these non-GAAP financial measures to facilitate a comparison of the company’s operating performance on a consistent basis from period to period and to provide measures that, when viewed in combination with its results prepared in accordance with GAAP, we believe allow for a more complete understanding of factors and trends affecting the company’s business than GAAP measures alone.

Management believes EBITDA, adjusted EBITDA and segment adjusted EBITDA assist the company’s board of directors, management and investors in comparing the company’s operating performance on a consistent basis from period to period by removing the impact of the company’s earnings elements attributable to the company’s asset base (primarily depreciation and amortization), certain items outside the control of management, e.g., taxes, other non-cash items (such as impairment of intangible assets, purchase accounting adjustments and stock-based compensation), non-recurring items (such as strategic initiative and financial restructuring-related expenses) and income and expense that have been classified as discontinued operations from operating results.

Management believes adjusted net income and adjusted earnings per share assist the company’s board of directors, management and investors in comparing our net income and earnings per share on a consistent basis from period to period because these measures remove non-cash items (such as impairment of intangible assets, purchase accounting adjustments and stock-based compensation) and non-recurring items (such as strategic initiative and financial restructuring-related expenses) and eliminate the variability of non-controlling interest and equity in net income of unconsolidated affiliates.

Management believes free cash flow is an important measure because it represents the cash that the company generates after payments to certain former limited partners that elected to execute a Unit Exchange and Tax Receivable Agreement (“Unit Exchange Agreement”) in connection with our August 2020 restructuring, capital investment to maintain existing products and services and ongoing business operations, as well as development of new and upgraded products and services to support future growth and cash payments to OMNIA for the sale of future revenues and tax payments on proceeds received from the sale of future revenues. Free cash flow is important because it enables the company to seek enhancement of stockholder value through acquisitions, partnerships, joint ventures, investments in related or complementary businesses and/or debt reduction.

Also, adjusted EBITDA and free cash flow are supplemental financial measures used by the company and by external users of our financial statements and are considered to be indicators of the operational strength and performance of our business. Adjusted EBITDA and free cash flow measures allow us to assess our performance without regard to financing methods and capital structure and without the impact of other matters that we do not consider indicative of the operating performance of our business. More specifically, segment adjusted EBITDA is the primary earnings measure we use to evaluate the performance of our business segments.

Non-recurring items are income or expenses and other items that have not been earned or incurred within the prior two years and are not expected to recur within the next two years. Such items include acquisition- and disposition-related expenses, strategic initiative- and financial restructuring-related expenses, loss on disposal of long-lived assets, income and expense that has been classified as discontinued operations and other reconciling items.

Non-cash items include stock-based compensation expense and asset impairments.

Non-operating items include gains or losses on the disposal of assets, interest and investment income or expense, equity in net income of unconsolidated affiliates and operating income from revenues sold to OMNIA in connection with the sale of non-healthcare GPO member contracts, less royalty payments retained.

EBITDA is defined as net income before income or loss from discontinued operations, net of tax, interest and investment income or expense, net, income tax expense, depreciation and amortization and amortization of purchased intangible assets.

Adjusted EBITDA is defined as EBITDA before merger and acquisition-related expenses and non-recurring, non-cash or non-operating items.

Segment adjusted EBITDA is defined 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 payments retained.

Adjusted net income is defined as net income attributable to Premier (i) excluding income or loss from discontinued operations, net, (ii) excluding income tax expense, (iii) excluding the effect of non-recurring or non-cash items, including certain strategic initiative- and financial restructuring-related expenses, (iv) reflecting an adjustment for income tax expense on Non-GAAP net income before income taxes at our estimated annual effective income tax rate, adjusted for unusual or infrequent items, (v) excluding the equity in net income of unconsolidated affiliates and (vi) excluding operating income from revenues sold to OMNIA in connection with the sale of non-healthcare GPO member contracts, less royalty fees retained, imputed interest expense and associated income tax expense.

Adjusted earnings per share is adjusted net income divided by diluted weighted average shares.

Free cash flow is defined as net cash provided by operating activities from continuing operations less (i) early termination payments to certain former limited partners that elected to execute a Unit Exchange Agreement in connection with our August 2020 restructuring, (ii) purchases of property and equipment and (iii) cash payments to OMNIA for the sale of future revenues and tax payments on proceeds received from the sale of future revenues. Free cash flow does not represent discretionary cash available for spending as it excludes certain contractual obligations such as debt repayments.

To properly and prudently evaluate our business, readers are urged to review the reconciliation of these non-GAAP financial measures, as well as the other financial tables, included at the end of this release. Readers should not rely on any single financial measure to evaluate the company’s business. In addition, the non-GAAP financial measures used in this release are susceptible to varying calculations and may differ from, and may therefore not be comparable to, similarly titled measures used by other companies.

The Company has revised the definitions for adjusted EBITDA, segment adjusted EBITDA, adjusted net income and free cash flow from the definitions reported in the 2024 Annual Report. Adjusted EBITDA and segment adjusted EBITDA definitions were revised to exclude operating income from revenues sold to OMNIA in connection with the sale of non-healthcare GPO member contracts, less royalty fees retained. The adjusted net income definition was revised to exclude operating income from revenues sold to OMNIA in connection with the sale of non-healthcare GPO member contracts, less royalty fees retained, imputed interest expense and associated income tax expense. Free cash flow was revised to exclude the cash payments to OMNIA for the sale of future revenues and tax payments on proceeds received from the sale of future revenues. For comparability purposes, prior year non-GAAP financial measures are presented based on the current definitions in the above section.

In addition to the foregoing, this release and the reconciliations of our non-GAAP financial measures included at the end of this release include the presentation of additional fiscal 2025 non-GAAP financial measures including net revenue excluding Contigo Health, adjusted EBITDA excluding Contigo Health and adjusted earnings per share excluding Contigo Health. The company previously announced a plan to divest a majority interest in the Contigo Health business; however, as of December 31, 2024, the divestiture process for the Contigo Health business remains ongoing and our GAAP financial results for the first three and six months of fiscal 2025 presented in this release include contributions from that business. As the company expects that the Contigo Health business will be moved into discontinued operations in fiscal 2025, guidance presented in this release excludes financial contributions from this business. Accordingly, we believe that providing supplemental non-GAAP financial measures that align with our fiscal 2025 guidance allow for a better understanding of that guidance.

Further information on Premier’s use of non-GAAP financial measures is available in the “Our Use of Non-GAAP Financial Measures” section of Premier’s Form 10-Q for the quarter ended December 31, 2024, expected to be filed with the SEC shortly after this release, and which will also be made available on Premier’s website at investors.premierinc.com.

Premier’s Use of Forward-Looking Non-GAAP Measures

The company does not meaningfully reconcile guidance for non-GAAP adjusted EBITDA, non-GAAP adjusted net income and non-GAAP adjusted earnings per share to net income attributable to stockholders or earnings per share attributable to stockholders (and accordingly does not meaningfully reconcile free cash flow guidance, which is based on adjusted EBITDA) because the company cannot provide guidance for the more significant reconciling items between net income attributable to stockholders and each of these metrics without unreasonable effort. This is due to the fact that future period non-GAAP guidance includes adjustments for items not indicative of our core operations, which may include, without limitation, items included in the supplemental financial information for reconciliation of reported GAAP results to non-GAAP results. Such items include, but are not limited to, strategic and acquisition related expenses for professional fees; mark to market adjustments for put options and contingent liabilities; gains and losses on stock-based performance shares; adjustments to its income tax provision (such as valuation allowance adjustments and settlements of income tax claims); items related to corporate and facility restructurings; and certain other items the company believes to be non-indicative of its ongoing operations. Such adjustments may be affected by changes in ongoing assumptions, judgements, as well as non-recurring, unusual or unanticipated charges, expenses or gains/losses or other items that may not directly correlate to the underlying performance of our business operations. The exact amount of these adjustments is not currently determinable but may be significant.

As noted above, as a result of the company’s previously announced plan to divest a majority interest in the Contigo Health business, the forward-looking guidance presented in this release (including Total Net Revenue Excluding Contigo Health, adjusted EBITDA, adjusted net income, adjusted EPS and free cash flow), excludes the financial contribution of this business, in addition to any applicable adjustments for non-GAAP financial measures described above under “Premier’s Use and Definitions of Non-GAAP Measures.” With respect to these adjustments for Contigo Health, the company does not meaningfully reconcile guidance to GAAP measures because Contigo Health is expected to be moved into discontinued operations in fiscal 2025.

Cautionary Note Regarding Forward-Looking Statements

Statements made in this release that are not statements of historical or current facts, including, but not limited to, those related to our ability to advance our business strategies and improve healthcare, our ability to find a partner for our Contigo Health business and the potential benefits thereof, our ability to fund and conduct share repurchases pursuant to the outstanding share repurchase authorization and the potential benefits thereof, the payment of dividends at current levels or at all, guidance on expected future financial performance and assumptions underlying that guidance, and our expected effective income tax rate, are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Premier to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on any forward-looking statements, the achievement of which cannot be guaranteed. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in the conditional or future tenses or that include terms such as “believes,” “belief,” “expects,” “estimates,” “intends,” “anticipates” or “plans” to be uncertain and forward-looking. Forward-looking statements may include comments as to Premier’s beliefs and expectations regarding future events and trends affecting its business and are necessarily subject to risks and uncertainties, many of which are outside Premier’s control. More information on risks and uncertainties that could affect Premier’s business, achievements, performance, financial condition and financial results is included from time to time in the “Cautionary Note Regarding Forward-Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Premier’s periodic and current filings with the SEC, including the information in those sections of Premier’s Form 10-K for the year ended June 30, 2024, and subsequent Quarterly Reports on Form 10-Q, including the Form 10-Q for the quarter ended December 31, 2024 expected to be filed with the SEC shortly after the date of this release. Premier’s periodic and current filings with the SEC are made available on Premier’s website at investors.premierinc.com. Forward-looking statements speak only as of the date they are made, and Premier undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events that occur after that date, or otherwise.


Investor contact:		Media contact:

Ben Krasinski		Amanda Forster
Senior Director, Investor Relations		Vice President, Integrated Communications
704.816.5644		202.879.8004
ben_krasinski@premierinc.com		amanda_forster@premierinc.com

Condensed Consolidated Statements of Income

(Unaudited)

(In thousands, except per share data)


	Three Months Ended December 31,						Six Months Ended December 31,
	2024			2023			2024			2023
Net revenue:
Net administrative fees	$	131,417		$	150,470		$	264,042		$	300,356
Software licenses, other services, and support		108,849			129,401			224,366			248,541

Net revenue		240,266			279,871			488,408			548,897
Cost of revenue:
Services and software licenses		69,058			65,990			136,782			130,122

Cost of revenue		69,058			65,990			136,782			130,122

Gross profit		171,208			213,881			351,626			418,775

Operating expenses:
Selling, general, and administrative		253,768			137,659			388,648			270,797
Research and development		726			928			1,312			1,791
Amortization of purchased intangible assets		9,537			12,399			19,174			24,952

Operating expenses		264,031			150,986			409,134			297,540

Operating (loss) income		(92,823	)		62,895			(57,508	)		121,235

Equity in net income (loss) of unconsolidated affiliates		9,502			(666	)		11,335			(2,392	)
Interest (expense) income, net		(3,787	)		1,881			(5,543	)		1,859
Other income, net		23,304			4,679			83,563			3,587

Other income, net		29,019			5,894			89,355			3,054

(Loss) income before income taxes		(63,804	)		68,789			31,847			124,289
Income tax (benefit) expense		(17,967	)		18,341			4,744			32,072

Net (loss) income from continuing operations		(45,837	)		50,448			27,103			92,217
Net (loss) income from discontinued operations, net of tax		(39,389	)		2,418			(40,993	)		3,059

Net (loss) income		(85,226	)		52,866			(13,890	)		95,276
Net (income) loss from continuing operations attributable to non-controlling interest		(10,792	)		1,436			(11,344	)		3,787

Net (loss) income attributable to stockholders	$	(96,018	)	$	54,302		$	(25,234	)	$	99,063

*Calculation of GAAP Earnings per Share*
Numerator for basic and diluted (loss) earnings per share:
Net (loss) income from continuing operations attributable to stockholders	$	(56,629	)	$	51,884		$	15,759		$	96,004
Net (loss) income from discontinued operations attributable to stockholders		(39,389	)		2,418			(40,993	)		3,059

Net (loss) income attributable to stockholders	$	(96,018	)	$	54,302		$	(25,234	)	$	99,063

Denominator for (loss) earnings per share:
Basic weighted average shares outstanding		94,765			119,702			97,573			119,523
Effect of dilutive securities:
Restricted stock units		—			355			520			444
Performance share awards		—			—			—			128

Diluted weighted average shares		94,765			120,057			98,093			120,095

(Loss) earnings per share attributable to stockholders:
Basic (loss) earnings per share from continuing operations	$	(0.60	)	$	0.43		$	0.16		$	0.80
Basic (loss) earnings per share from discontinued operations		(0.41	)		0.02			(0.42	)		0.03

Basic (loss) earnings per share attributable to stockholders	$	(1.01	)	$	0.45		$	(0.26	)	$	0.83

Diluted (loss) earnings per share from continuing operations	$	(0.60	)	$	0.43		$	0.16		$	0.80
Diluted (loss) earnings per share from discontinued operations		(0.41	)		0.02			(0.42	)		0.02

Diluted (loss) earnings per share attributable to stockholders	$	(1.01	)	$	0.45		$	(0.26	)	$	0.82

Condensed Consolidated Balance Sheets

(Unaudited)

(In thousands, except share data)


	December 31, 2024			June 30, 2024
Assets
Cash and cash equivalents	$	85,850		$	125,146
Accounts receivable (net of $6,377 and $1,455 allowance for credit losses, respectively)		117,248			100,965
Contract assets (net of $1,206 and $1,248 allowance for credit losses, respectively)		328,907			335,831
Prepaid expenses and other current assets		76,402			73,653
Current assets of discontinued operations		—			119,662

Total current assets		608,407			755,257
Property and equipment (net of $780,995 and $742,063 accumulated depreciation, respectively)		203,082			205,711
Intangible assets (net of $313,507 and $294,333 accumulated amortization, respectively)		250,085			269,259
Goodwill		869,034			995,852
Deferred income tax assets		783,017			773,002
Deferred compensation plan assets		46,796			54,422
Investments in unconsolidated affiliates		270,240			228,562
Operating lease right-of-use assets		15,365			20,635
Other assets		96,349			98,749

Total assets	$	3,142,375		$	3,401,449

Liabilities and stockholders’ equity
Accounts payable	$	21,880		$	22,610
Accrued expenses		50,428			58,482
Revenue share obligations		333,345			292,792
Accrued compensation and benefits		53,347			100,395
Deferred revenue		20,552			19,642
Line of credit and current portion of long-term debt		100,000			1,008
Current portion of notes payable to former limited partners		50,994			101,523
Current portion of liability related to the sale of future revenues		45,732			51,798
Other current liabilities		55,948			52,589
Current liabilities of discontinued operations		423			45,724

Total current liabilities		732,649			746,563
Liability related to the sale of future revenues, less current portion		618,386			599,423
Deferred compensation plan obligations		46,796			54,422
Operating lease liabilities, less current portion		5,058			11,170
Other liabilities		21,595			27,640

Total liabilities		1,424,484			1,439,218

Commitments and contingencies
Stockholders’ equity:
Class A common stock, $0.01 par value, 500,000,000 shares authorized; 91,675,524 shares issued and outstanding at December 31, 2024 and 111,456,454 shares issued and 105,027,079 shares outstanding at June 30, 2024		917			1,115
Treasury stock, at cost; 6,429,375 shares at June 30, 2024		—			(250,129	)
Additional paid-in capital		2,203,675			2,105,684
(Accumulated deficit) retained earnings		(486,627	)		105,590
Accumulated other comprehensive loss		(74	)		(29	)

Total stockholders’ equity		1,717,891			1,962,231

Total liabilities and stockholders’ equity	$	3,142,375		$	3,401,449

Condensed Consolidated Statements of Cash Flows

(Unaudited)

(In thousands)


	Six Months Ended December 31,
	2024			2023
Operating activities
Net (loss) income	$	(13,890	)	$	95,276
Adjustments to reconcile net (loss) income to net cash provided by operating activities:
Net loss (income) from discontinued operations, net of tax		40,993			(3,059	)
Depreciation and amortization		58,827			65,547
Equity in net (income) loss of unconsolidated affiliates		(11,335	)		2,392
Deferred income taxes		6,064			(154,933	)
Stock-based compensation		9,519			15,070
Impairment of assets		126,818			—
Other, net		(6,655	)		2,965
Changes in operating assets and liabilities, net of the effects of acquisitions:
Accounts receivable		(5,012	)		(14,743	)
Contract assets		5,550			(33,178	)
Prepaid expenses and other assets		13,921			(4,077	)
Accounts payable		(3,717	)		(9,733	)
Revenue share obligations		40,553			17,567
Accrued expenses, deferred revenue, and other liabilities		(67,903	)		36,371

Net cash provided by operating activities from continuing operations		193,733			15,465
Net cash (used in) provided by operating activities from discontinued operations		(14,418	)		19,915

Net cash provided by operating activities	$	179,315		$	35,380

Investing activities
Purchases of property and equipment	$	(39,877	)	$	(49,068	)

Net cash used in investing activities	$	(39,877	)	$	(49,068	)

Financing activities
Payments on notes payable	$	(51,537	)	$	(50,872	)
Proceeds from credit facility		100,000			—
Payments on credit facility		—			(215,000	)
Proceeds from sale of future revenues		42,325			629,820
Payments on liability related to the sale of future revenues		(29,428	)		(14,611	)
Cash dividends paid		(42,368	)		(51,059	)
Repurchase of Class A common stock		(189,754	)		—
Other, net		(7,927	)		(3,296	)

Net cash (used in) provided by financing activities	$	(178,689	)	$	294,982

Effect of exchange rate changes on cash flows		(45	)		23
Net (decrease) increase in cash and cash equivalents		(39,296	)		281,317
Cash and cash equivalents at beginning of period		125,146			89,793

Cash and cash equivalents at end of period	$	85,850		$	371,110

Supplemental Financial Information

Reconciliation of Net Cash Provided by Operating Activities from Continuing Operations to Free Cash Flow

(Unaudited)

(In thousands)


	Six Months Ended December 31,
	2024			2023
Net cash provided by operating activities from continuing operations	$	193,733		$	15,465
Early termination payments to certain former limited partners that elected to execute a Unit Exchange Agreement ^(a)		(50,529	)		(49,600	)
Purchases of property and equipment		(39,877	)		(49,068	)
Cash payments to OMNIA for the sale of future revenues ^(b)		(29,428	)		(14,611	)
Cash tax payments on proceeds received from the sale of future revenues		—			138,476

Free cash flow	$	73,899		$	40,662

(a)

Early termination payments to certain former limited partners that elected to execute a Unit Exchange Agreement in connection with Premier’s August 2020 restructuring are presented in the Consolidated Statements of Cash Flows under “Payments made on notes payable.” During the six months ended December 31, 2024, the company paid $51.3 million to members, including imputed interest of $0.8 million which is included in net cash provided by operating activities from continuing operations. During the six months ended December 31, 2023, the company paid $51.3 million to members, including imputed interest of $1.7 million which is included in net cash provided by operating activities from continuing operations.

(b)

Cash payments to OMNIA for the sale of future revenues in connection with our sale of non-healthcare contracts to OMNIA are presented in the Consolidated Statements of Cash Flows under “Payments on liability related to the sale of future revenues.” During the six months ended December 31, 2024, the company paid $38.0 million to OMNIA, including imputed interest of $8.6 million which is included in net cash provided by operating activities from continuing operations. During the six months ended December 31, 2023, the company paid $21.0 million to OMNIA, including imputed interest of $6.4 million which is included in net cash provided by operating activities from continuing operations.

Supplemental Financial Information

Reconciliation of Net Income from Continuing Operations to Adjusted EBITDA

Reconciliation of Operating Income to Segment Adjusted EBITDA

Reconciliation of Net Income Attributable to Stockholders to Adjusted Net Income

(Unaudited)

(In thousands)


	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2024			2023			2024			2023
Net (loss) income from continuing operations	$	(45,837	)	$	50,448		$	27,103		$	92,217
Interest expense (income), net		3,787			(1,881	)		5,543			(1,859	)
Income tax (benefit) expense		(17,967	)		18,341			4,744			32,072
Depreciation and amortization		20,002			20,267			39,653			40,595
Amortization of purchased intangible assets		9,537			12,399			19,174			24,952

EBITDA		(30,478	)		99,574			96,217			187,977
Stock-based compensation		2,691			8,495			9,831			15,388
Acquisition- and disposition-related expenses		(1,970	)		1,198			914			7,403
Strategic initiative and financial restructuring-related expenses		1,883			1,284			1,993			3,030
Operating income from revenues sold to OMNIA		(15,571	)		(14,797	)		(31,281	)		(26,463	)
Equity in net (income) loss of unconsolidated affiliates		(9,502	)		666			(11,335	)		2,392
Other non-operating gains		(5,430	)		—			(62,674	)		—
Impairment of assets		126,818			—			126,818			—
Other reconciling items, net		(18,351	)		(1	)		(17,965	)		—

Adjusted EBITDA	$	50,090		$	96,419		$	112,518		$	189,727

Less: Contigo Health		1,976			1,338			4,203			4,068

Adjusted EBITDA excluding Contigo Health	$	52,066		$	97,757		$	116,721		$	193,795

(Loss) income before income taxes	$	(63,804	)	$	68,789		$	31,847		$	124,289
Equity in net (income) loss of unconsolidated affiliates		(9,502	)		666			(11,335	)		2,392
Interest expense (income), net		3,787			(1,881	)		5,543			(1,859	)
Other income, net		(23,304	)		(4,679	)		(83,563	)		(3,587	)

Operating (loss) income		(92,823	)		62,895			(57,508	)		121,235
Depreciation and amortization		20,002			20,267			39,653			40,595
Amortization of purchased intangible assets		9,537			12,399			19,174			24,952
Stock-based compensation		2,691			8,495			9,831			15,388
Acquisition- and disposition-related expenses		(1,970	)		1,198			914			7,403
Strategic initiative and financial restructuring-related expenses		1,883			1,284			1,993			3,030
Operating income from revenues sold to OMNIA		(15,571	)		(14,797	)		(31,281	)		(26,463	)
Deferred compensation plan expense		221			4,605			2,913			3,480
Impairment of assets		126,818			—			126,818			—
Other reconciling items, net		(698	)		73			11			107

Adjusted EBITDA	$	50,090		$	96,419		$	112,518		$	189,727

SEGMENT ADJUSTED EBITDA
Supply Chain Services	$	73,740		$	96,532		$	151,251		$	197,919
Performance Services		9,123			31,205			24,072			54,135
Corporate		(32,773	)		(31,318	)		(62,805	)		(62,327	)

Adjusted EBITDA	$	50,090		$	96,419		$	112,518		$	189,727

Net (loss) income attributable to stockholders	$	(96,018	)	$	54,302		$	(25,234	)	$	99,063
Net loss (income) from discontinued operations, net of tax		39,389			(2,418	)		40,993			(3,059	)
Income tax (benefit) expense		(17,967	)		18,341			4,744			32,072
Amortization of purchased intangible assets		9,537			12,399			19,174			24,952
Stock-based compensation		2,691			8,495			9,831			15,388
Acquisition- and disposition-related expenses		(1,970	)		1,198			914			7,403
Strategic initiative and financial restructuring-related expenses		1,883			1,284			1,993			3,030
Operating income from revenues sold to OMNIA		(15,571	)		(14,797	)		(31,281	)		(26,463	)
Equity in net (income) loss of unconsolidated affiliates		(9,502	)		666			(11,335	)		2,392
Other non-operating gains		(5,430	)		—			(62,674	)		—
Impairment of assets		126,818			—			126,818			—
Other reconciling items, net		(2,495	)		3,717			3,741			5,347

Adjusted income before income taxes		31,365			83,187			77,684			160,125
Income tax expense on adjusted income before income taxes		7,528			22,461			18,644			43,234

Adjusted net income	$	23,837		$	60,726		$	59,040		$	116,891

Supplemental Financial Information

Reconciliation of GAAP EPS to Adjusted EPS

(Unaudited)

(In thousands, except per share data)


	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2024			2023			2024			2023
Net (loss) income attributable to stockholders	$	(96,018	)	$	54,302		$	(25,234	)	$	99,063
Net loss (income) from discontinued operations, net of tax		39,389			(2,418	)		40,993			(3,059	)
Income tax (benefit) expense		(17,967	)		18,341			4,744			32,072
Amortization of purchased intangible assets		9,537			12,399			19,174			24,952
Stock-based compensation		2,691			8,495			9,831			15,388
Acquisition- and disposition-related expenses		(1,970	)		1,198			914			7,403
Strategic initiative and financial restructuring-related expenses		1,883			1,284			1,993			3,030
Operating income from revenues sold to OMNIA		(15,571	)		(14,797	)		(31,281	)		(26,463	)
Equity in net (income) loss of unconsolidated affiliates		(9,502	)		666			(11,335	)		2,392
Other non-operating gains		(5,430	)		—			(62,674	)		—
Impairment of assets		126,818			—			126,818			—
Other reconciling items, net		(2,495	)		3,717			3,741			5,347

Adjusted income before income taxes		31,365			83,187			77,684			160,125
Income tax expense on adjusted income before income taxes		7,528			22,461			18,644			43,234

Adjusted net income	$	23,837		$	60,726		$	59,040		$	116,891

Weighted average:
Basic weighted average shares outstanding		94,765			119,702			97,573			119,523
Dilutive shares		429			355			520			572

Weighted average shares outstanding - diluted		95,194			120,057			98,093			120,095

Basic (loss) earnings per share attributable to stockholders	$	(1.01	)	$	0.45		$	(0.26	)	$	0.83
Net loss (income) from discontinued operations, net of tax		0.42			(0.02	)		0.42			(0.03	)
Income tax (benefit) expense		(0.19	)		0.15			0.05			0.27
Amortization of purchased intangible assets		0.10			0.10			0.20			0.21
Stock-based compensation		0.03			0.07			0.10			0.13
Acquisition- and disposition-related expenses		(0.02	)		0.01			0.01			0.06
Strategic initiative and financial restructuring-related expenses		0.02			0.01			0.02			0.03
Operating income from revenues sold to OMNIA		(0.16	)		(0.12	)		(0.32	)		(0.22	)
Equity in net (income) loss of unconsolidated affiliates		(0.10	)		0.01			(0.12	)		0.02
Other non-operating gains		(0.06	)		—			(0.64	)		—
Impairment of assets		1.34			—			1.30			—
Other reconciling items, net		(0.04	)		0.04			0.03			0.03
Impact of corporation taxes		(0.08	)		(0.19	)		(0.19	)		(0.36	)

Adjusted earnings per share	$	0.25		$	0.51		$	0.60		$	0.97

Less: Contigo Health		0.02			0.02			0.05			0.05

Adjusted earnings per share excluding Contigo Health^(a)	$	0.27		$	0.53		$	0.65		$	1.02

(a)	Contigo Health Adjusted EPS were losses and therefore added back to the total.

Supplemental Financial Information

Reconciliation of Certain Financial Measures to Adjust for Contigo Health

(Unaudited)

(In thousands)


	Three Months Ended						Six Months Ended
	December 31,						December 31,
	2024			2023			2024			2023
Net revenue	$	240,266		$	279,871		$	488,408		$	548,897
Less: Contigo Health		(8,045	)		(10,627	)		(15,691	)		(20,784	)

Net revenue excluding Contigo Health	$	232,221		$	269,244		$	472,717		$	528,113

Adjusted EBITDA	$	50,090		$	96,419		$	112,518		$	189,727
Less: Contigo Health ^(a)		1,976			1,338			4,203			4,068

Adjusted EBITDA excluding Contigo Health	$	52,066		$	97,757		$	116,721		$	193,795

Adjusted EPS	$	0.25		$	0.51		$	0.60		$	0.97
Less: Contigo Health ^(a)		0.02			0.02			0.05			0.05

Adjusted EPS excluding Contigo Health	$	0.27		$	0.53		$	0.65		$	1.02

(a)	Contigo Health Adjusted EBITDA and Adjusted EPS were losses and therefore added back to the total.

Exhibit 99.2

Premier, Inc.

Fiscal 2025 Q2 Earnings Call Transcript

February 4, 2025, 8:00 a.m. ET

CORPORATE PARTICIPANTS

•

Michael Alkire Premier, Inc. - President, CEO & Director

•

Ben Krasinski Premier, Inc. - Senior Director, Investor Relations

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Glenn Coleman Premier, Inc. - Chief Administrative and Financial Officer

CONFERENCE CALL PARTICIPANTS

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Michael Cherny Leerink Partners - Analyst

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Eric Percher Nephron Research - Analyst

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Kevin Caliendo UBS Equities - Analyst

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Eric Coldwell Robert W. Baird & Co., Inc. - Analyst

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Jessica Tassan Piper Sandler Companies - Analyst

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Richard Close Canaccord Genuity - Analyst

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Allen Lutz BofA Global Research - Analyst

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Bill Sutherland The Benchmark Company LLC - Analyst

PRESENTATION

Operator

Good morning, and welcome to Premier’s fiscal 2025 second quarter conference call. (Operator Instructions) Please note this event is being recorded.

I would now like to turn the conference over to Ben Krasinski, Senior Director, Investor Relations. Please go ahead.

Ben Krasinski Premier, Inc. - Senior Director, Investor Relations

Thank you. and welcome to Premier’s fiscal 2025 second quarter conference call. Our speakers this morning are Mike Alkire, Premier’s President and CEO, and Glenn Coleman, our Chief Administrative and Financial Officer.

Before we get started, I want to remind everyone that our earnings release and the supplemental presentation accompanying this call are available in the Investors section of our website at investors.premierinc.com. Please be advised that management’s remarks today contain certain forward-looking statements such as statements regarding our strategies, plans, prospects, expectations, and future performance and actual results could differ materially from those discussed today.

These forward-looking statements speak as of today, and we undertake no obligation to update them. Factors that might affect future results are discussed in our filings with the SEC, including our most recent Form 10-K and our Form 10-Q for the quarter, which we expect to file soon. We encourage you to review the detailed forward-looking statement and risk factor disclosures in these reports.

Also, during this presentation, we will refer to adjusted and other non-GAAP financial measures, including free cash flow, to evaluate our business. Information on why we use these measures in addition to GAAP financial measures and reconciliations of these measures to our GAAP financial measures are included in our earnings release and in the appendix of the supplemental presentation accompanying this call. Information on our non-GAAP financial measures will also be included in our Form 10-Q for the quarter and our earnings Form 8-K, both of which we expect to file soon.

Now, turning the call over to Mike Alkire.

Michael Alkire Premier, Inc. - President, CEO & Director

Thanks, Ben. Good morning and thank you for joining us for our fiscal 2025 second quarter earnings call. This morning, I’ll spend a few minutes giving you an update on our business strategy and performance, then pass it over to Glenn for a more detailed review of our financials.

As a preview, overall revenue and profitability for the first half of fiscal 2025 were in line with our expectations resulting from better-than-expected results in our Supply Chain Services segment. As a result, we are reaffirming total net revenue guidance and increasing our adjusted earnings per share guidance despite not achieving our objectives in the Performance Services segment.

Overall, the team continues to execute and deliver on our long-term vision of technology-enabling performance improvement and supply chain excellence for healthcare. In the second quarter, we continue to make the progress advancing our strategies and remain committed to our goal of enabling better, smarter and faster healthcare.

In the Supply Chain Services segment, we are excited to announce the successful transition of our digital supply chain strategy beyond the pilot phase marked by the signing of our first agreement with a major partner. This partner is one of many in our pipeline that will leverage our unique clinical and supply chain data sets for innovation across research, development, clinical utilization and supply chain resiliency.

As we have shared previously, the digitization of invoicing and payables for healthcare providers is a critical step towards creating a more transparent and efficient healthcare supply chain. Our strategy encompasses the following key areas. First, we are AI-enabling manual back-office processes for providers and suppliers delivering significant time improvement and cost savings. Second, we are enhancing our data to deliver a comprehensive view of total non-labor healthcare spend to further enable actionable performance improvement insights for providers. Third, we are leveraging our extensive data set to embed evidence-based decision-making into workflows, ensuring the right product is available for the right patient at the right time. And finally, by enhancing supply chain transparency, we are helping the industry anticipate and address potential shortages before they impact patient care.

On the topic of shortages, we are encouraged by the growing demand for Premier’s provider-focused data, market intelligence and expertise in objectively navigating the 503B program, which is a key differentiator for us in the market. As background, suppliers typically rely on the FDA drug shortage list to target which drugs to manufacture, but often lack the actionable insights to act quickly. However, they can leverage our market-leading capabilities to shorten the time it takes to bring new supply to market, providing much needed relief to healthcare providers experiencing shortages.

In the Performance Services segment, we remain confident in our long-term strategy to deliver technology-enabled services that enhance care delivery and optimize total cost of care for providers, payers, and suppliers. We are thrilled to welcome David Zito as our new President of Performance Services. Dave brings an impressive 40 years of healthcare consulting expertise with deep experience and financial turnaround and revenue diversification strategies for providers. His leadership and insights will be invaluable as we continue to innovate and grow. We also continue to strongly believe in the transformative potential of automation and AI-enabled guidance to streamline workflows and enhance satisfaction for providers. This will ultimately lead to better care for patients.

In addition, our pipeline of providers eager to modernize through digitization remains robust. Both Glenn and Dave joined me at the JPMorgan Healthcare Conference last month where we participated in over two dozen meetings with investors, customers, and key prospects. Their feedback was overwhelmingly positive, reinforcing Premier’s ability to harness our healthcare data to drive provider performance improvements and deliver real-world evidence that drives appropriate utilization of the most efficacious products at the right price for the right patients.

I remain confident in our team’s ability to deliver strong results and navigate the dynamic healthcare landscape effectively. With our strategic direction and talented leadership team, we are well positioned for continued success.

With that, I’ll now turn the call over to Glenn.

Glenn Coleman Premier, Inc. - Chief Administrative and Financial Officer

Thanks, Mike. Good morning, everyone. As a reminder, all results discussed during this call reflect continuing operations and do not reflect S2S Global, which was divested on October 1, 2024. I’m also pleased to report that we completed the sale of the network assets of Contigo Health in January of 2025, and we continue to work towards divesting the remaining assets before the end of this fiscal year. As such, actual results for the quarter include contributions from Contigo business. However, we are continuing to exclude the results in our guidance.

Now, turning to second quarter consolidated results. Our second quarter revenue and adjusted EBITDA were below our expectations. However, for the first six months of fiscal year 2025, we are on track with these metrics and ahead of our expectations for adjusted EPS. Net revenue of $240 million for the quarter decreased from the prior year period, driven by a decline in net administrative fees revenue in Supply Chain Services.

In addition, we experienced lower revenue in consulting services and an unfavorable product mix in applied sciences within the Performance Services segment. GAAP net loss from continuing operations of $46 million was mainly due to an impairment charge to goodwill of $127 million related to our data and technology business in the Performance Services segment. This was partially offset by profitability from continuing operations, which included an $18 million cash distribution from one of our minority investments.

Adjusted EBITDA was $50 million, translating to a margin of 20.8% and declined largely due to lower revenue. Adjusted earnings per share was $0.25, and excluding the impact of Contigo Health was $0.27 and in line with our expectations. Adjusted EPS benefited from a lower weighted average share count as a result of the share repurchases under our $1 billion authorization. As of January 2025, we repurchased over 29 million shares of Class A common stock for $600 million.

Turning to segment results, in our Supply Chain Services segment, lower net administrative fees revenue was driven by the expected increase in the aggregate blended fee share to the low 60% level in the quarter. However, gross administrative fees grew as existing members continued to increase penetration of contract spend and as we recruit and onboard new members.

The group of GPO members that were part of the August 2020 restructure represent approximately 70% of our total gross administrative fees. As of December 31, we’ve addressed members representing approximately 69% of this group’s fees, and we expect to address greater than 75% by the end of fiscal year 2025, with the majority of the remainder occurring in fiscal 2026.

In addition, we continue to expect our aggregate blended fee share to be in the low 60% range for the full fiscal year 2025 and that it will likely stabilize in the high 60s once we’ve completed the renewal process. To date, while the increase in our aggregate blended fee share has negatively impacted our year-over-year results, it has been less of a headwind versus our expectations, and as a result, is one of the reasons we’re increasing our revenue guidance for Supply Chain Services.

Also, we experienced growth in other supply chain services revenue, driven by new agreements in our supply chain co-management business where members continue to express interest in leveraging Premier’s expertise to help manage their end-to-end supply chain operations.

Moving to the Performance Services segment, the revenue decline of 19% was due to lower demand in consulting services and product mix in Applied Sciences. In addition, we’ve begun to see a gradual shift in member interest favoring SaaS subscription engagements versus license agreements.

To echo what Mike said, despite these current short-term headwinds and timing-related items, we remain confident in our long-term strategy and under Dave’s leadership, we plan to reinvigorate this business by recruiting new talent with a strong track record of delivering broad-based performance improvement at large health systems, refocusing our solutions and go-to-market strategy around key areas of differentiation, leveraging our performance improvement collaboratives more broadly in the market and extending our unique AI capabilities to new use cases while continuing to further penetrate the market in the areas we already serve.

Shifting to the balance sheet, in the first half of fiscal year 2025, free cash flow of $74 million increased by $33 million from the prior year period. This improvement was largely driven by cash received from the derivative lawsuit settlement and the distribution from a minority investment. These are partially offset by the timing of payments to OMNIA and higher performance-related compensation payments. Cash and cash equivalents totalled $86 million as of December 31, 2024. We ended the quarter with an outstanding balance of $100 million on our $1 billion revolving credit facility, of which $65 million will be paid in January.

With respect to capital deployment, we continue to remain disciplined and focused on taking a balanced approach and returning capital to stockholders in the near term. We completed the $200 million share repurchase in early January of 2025. We also continued to return capital through our quarterly dividend, which totalled $42 million in the first half of fiscal year 2025 and represented a 4% yield in calendar year 2024.

In addition, our Board recently declared a dividend of $0.21 per share payable in March. Our priority in capital deployment will be driving revenue growth through organic investments as well as potential tuck-in acquisitions to differentiate our core offerings in the marketplace.

Turning to guidance, based on actual performance for the first half of fiscal year 2025, which was in line with our overall expectations, and the outlook for the remainder of the year, we are reaffirming the midpoint of our consolidated revenue guidance range, updating the underlying segment expectations, and tightening all ranges.

In Supply Chain Services, we’re increasing the midpoint of our revenue guidance range by $25 million to reflect higher net administrative fees resulting from a favorable blended fee share. In addition, we’ve added new members, including Aspire Health Partners and a recent competitive GPO win. Lastly, we expect the payment in the fourth quarter from a member that entered into a joint venture with another health system, which will require a phased termination of their agreement through fiscal 2028.

In Performance Services, we’re lowering the midpoint of our revenue guidance range by $25 million, resulting from the previously discussed short-term headwinds that we’re experiencing.

In terms of profitability, we are tightening our ranges as well as reaffirming the midpoint of our adjusted EBITDA guidance due to better performance in Supply Chain Services and increasing the midpoint of our adjusted earnings per share guidance by $0.08 to reflect the favorable impact of the $200 million share repurchase completed in early January.

For the second half of the year, we expect our GPO business to have flat to slightly higher net administrative fees in the third quarter as compared to the second quarter. Then in the fourth quarter, we anticipate a sequential increase resulting from the expected member payment and ramping up of new member spend.

In Performance Services, we anticipate our revenue will be more back-end weighted in the fourth quarter. For profitability, we expect adjusted EBITDA and adjusted earnings per share to be slightly more fourth quarter weighted, mainly due to the timing and mix of revenue.

In summary, we remain on track for the year. Supply Chain Services is doing better than expected. We have an action plan to reinvigorate performance services. We believe we have the right strategy and differentiation in the market. And we have a flexible balance sheet and meaningful cash flow that provides us with the ability to continue to grow our business and return value to stockholders.

We appreciate your time today, and now we’ll open the call for questions.

QUESTIONS AND ANSWERS

Operator

(Operator Instructions) Michael Cherny, Leerink Partners.

Michael Cherny - Leerink Partners - Analyst

Good morning and thanks for taking the question. Maybe just a big picture question for Mike first. Obviously, we had a lot of discussion debate over the weekend and yesterday regarding tariffs, which I know are not off of the radar. What are the discussions that you’re having with your customers now to potentially prepare for a world of tariffs given some of the supply constraints or supply components that come from areas that would be affected by tariffs? And I guess, what can you do or what are you doing proactively now to make sure that your customers have the best purchasing leverage, most opportunity for savings as possible?

Michael Alkire – Premier, Inc. - President, CEO & Director

Thank you, Michael. And I think the number one thing we’ve got to continue to focus on is just continuing to build the resiliency and diversification of the suppliers in the supply chain. So obviously, like you all, I’ve been — we have been following this issue incredibly closely. I mean, it is constantly changing. I’ve read about what’s happened in Canada and what happened in Mexico and the potential of tariffs and maybe not having tariffs.

I think at the end of the day, and you know this, the full impact of the tariffs are going to depend on the countries that have the tariffs. And so we obviously are being very, very focused on trying to understand that. In general, as it relates to us, most of our contracts have firm for the term pricing, which includes protections against taxes and tariffs to help mitigate any short-term impacts on the healthcare providers. So that’s number one.

Number two, and I think, again, as you’ve heard over the years from me, our focus has really been how are we diversifying, not having an overreliance on a country in Southeast Asia, but truly being able to spread some of that, if not most of that production to other countries. We think that by doing that, that it will lessen the potential for tariffs and so there’s a number of things that obviously we’re doing to ensure that the healthcare systems are not impacted truly to ensure we’re providing contracts that are firm for the term and that we’re also creating as much diversification in the supply chain as possible.

Michael Cherny - Leerink Partners - Analyst

Thanks, Mike. I appreciate that given your broad view of the world. And then maybe just as a secondary question on the dynamics behind the net administrative fees. Glenn, you mentioned you came out a little better than you had anticipated to start the year. Obviously, a lot going on with the broad-based recontracting. Can you give us a little sense as to the drivers that led you to that point as we work our way through the finalization of this recontracting effort?

Glenn Coleman – Premier, Inc. - Chief Administrative and Financial Officer

Yes. Thanks for the question, Mike, and overall, we are very happy with the performance of Supply Chain Services. So I want to give you a couple of pieces in addition to the net administrative fees. We continue to see really good growth in our gross administrative fees. So if you remember last quarter, Craig had highlighted this as a positive. So that continued into the second quarter. We actually grew close to 4% overall on the gross administrative fees, which puts us close to 5% year-to-date, and it’s pretty broad-based. If I look at food, pharmacy, diagnostics, medical, surgical, construction, facilities, all categories that were growing. So that was a very positive sign for us.

When we look at the fee share situation, obviously, we’re going through the renegotiation. We’re actually 69% of the way through now, which is also a positive. And I did highlight also that the remainder should pretty much be complete by the end of fiscal 2026. So trying to get these wrapped up by the end of fiscal year 2026. But we’re making good progress. And so far, I would say relative to what we had laid out as a budget in our expectations, we’re seeing some few favorable fee share impacts.

And so those are the key drivers about why we’re confident in terms of raising our numbers for supply chain services coupled with the fact, we’re now going to see some upticks in additional members coming on Board. We talked previously about the big AllSpire win that’s now kicking in January 1, so that’s going to help us here in the back half of the year. And then we also had another new member win that we’re not disclosing the name of the member, but that’s going to help us as well. So on the whole, while the numbers are down year-over-year, things are trending in a positive direction when you look at our Supply Chain Services business.

Operator

Eric Percher, Nephron Research.

Eric Percher - Nephron Research - Analyst

Thanks for the detail, Glenn. I’d like to go a little bit further on that, which is I’m looking out at fiscal year ‘26 and there’s a wide range of guidance. And my concern is that in the commentary around stabilizing in the high 60s, maybe leaving us a little bit ahead of ourselves. Can I ask you, when you look at this year and where you progressed so far, how does that - what’s your expectation as you get into Q3 and Q4?

And then as you step off from that, the high 60s target, how much of that is because you see lower retention falling off and any commentary you can give us on the kind of absolute value we should be looking for in the future versus kind of netting any groups leaving versus the new members you’ve announced?

Glenn Coleman – Premier, Inc. - Chief Administrative and Financial Officer

Yes. Thank you for the question, Eric. I think first and foremost, we do expect to see higher contract penetration on all of our contracts. So as we look at the situation with Supply Chain Services going into next year, I’m encouraged by the momentum we have in terms of our contract penetration. And there’s even some really nice growth areas on the non-acute side, seeing some really good growth in some of the non-acute categories. So that’s encouraging.

On the fee share piece of it, I would just tell you from Q1 to Q2, it’s relatively stable. So we didn’t see a big uptick. I would expect some increase in the fee share as we get into the back half of the year, albeit very modest. And then we’ll have to see where it ends up in fiscal year 2026.

But in my prepared remarks, I did mention we expect it to end in the high 60s and I don’t think our view has changed around that. Is it possible it could be a little bit better given where we are today? It’s possible. But until we get through all the negotiations, I’m going to be careful on setting an expectation that’s anything other than the high 60s for the moment.

Michael Alkire - Premier Inc - President, CEO & Director

And Eric, this is Mike. Just real quickly, we’ve been making some pretty significant investment in the technology enablement of the supply chain and what does that mean? It means that we’re getting really after all of the spend from a technology standpoint. And so having that as the opportunity to continue to build contracts and design models that can drive additional value from an admin fee perspective. We think that, obviously, that’s going to be a very significant tailwind at least to the gross admin fees.

Eric Percher - Nephron Research - Analyst

And to put a fine point on that, you’re saying that high 60s is through addition of opportunity, not through subtraction of lower retention customers.

Michael Alkire – Premier, Inc. - President, CEO & Director

Say that one more time?

Eric Percher - Nephron Research - Analyst

I was saying that it’s coming through addition of - it’s getting to a higher share of the customers you have today, not that you’re seeing the roll-off of lower retention customers.

Glenn Coleman – Premier, Inc. - Chief Administrative and Financial Officer

Yes, I think it’s a fair assessment.

Operator

Kevin Caliendo, UBS.

Kevin Caliendo - UBS Equities - Analyst

Good morning. The Performance Services, Glenn, you mentioned it’s going to be a little bit more fourth quarter weighted. I just want to maybe just understand sort of where the confidence lies in the improvement in that segment. Is it related to the new business win or AllSpire? Or is there just something around the seasonality of that just some comfort around the sort of ramp to get to guidance there?

Glenn Coleman – Premier, Inc. - Chief Administrative and Financial Officer

Yes, sure. And some of my comments is going to play into why Q2 was a soft quarter and why we think the second half of the year is actually going to be stronger. So if I look at the different parts of our Performance Services business, I’ll start off with Applied Sciences.

December is typically a very strong quarter. It’s the biggest quarter usually for Life Sciences companies in the market overall, and we didn’t see that this year. It was a softer market in Q4 calendar year than was typical. And so, we have an actual really strong funnel in Applied Sciences, and we think that we’ll see some of those deals come to fruition in our fiscal Q3 and fiscal Q4. So with a strong funnel, the fact we didn’t see the uptick at the end of the calendar year, we actually feel pretty good about the momentum going into calendar year 2025.

The other thing that we’re seeing in Applied Sciences is a shift in some of these deals that were typically licensed deals where we sell rollout data or customized data moving more towards the data access type engagement, and this is more akin to a subscription model. So we actually have won a couple of deals where the revenue is going to be spread out over multiple periods versus upfront. And so that gives us some confidence that we’ll see some of that come through later this year.

On the enterprise license agreements in our performance improvement technology area, we did see some of these deals shift from our fiscal Q2 into fiscal Q3 and Q4, we actually just closed one of them in the month of January that was supposed to happen last quarter. So some of it is timing around these enterprise license deals and when they get completed.

And obviously, we’re really focusing very hard with Dave’s leadership on building out a significant funnel of new opportunities in new logos and new customers. And so that’s a big focus for us right now to continue to better momentum in the second half of the year. I don’t know, Mike do you have anything?

Michael Alkire - Premier, Inc. - President, CEO & Director

Yes, just a couple of other things. Dave has been on Board here for a couple of months now. I will tell you, he has a much stronger focus on really building out our collaborative capability. So it’s something that, historically, Premier has had a very, very significant focus on. And for us, obviously, it’s an opportunity for us to work with health systems help them benchmark against each other, drive improvements, and then also for those that are interested, potentially use more capabilities for Premier, like one on one advisory and those kinds of things. So excited about getting that really refocused around and that’s - again, that’s the collaboratives.

I also think, obviously, with Dave’s background, he’s a very experienced industry veteran. I think his focus is how are we going to continue to build up capability in our advisory business. And that will only help us with the ability to sell additional technologies and additional services and those kinds of things. So really excited to see what happens here over the next couple of months as Dave gets his feet under.

Kevin Caliendo - UBS Equities - Analyst

That’s great. If I could ask a follow-up on the tariffs. I kind of don’t understand how this would all work. If the tariffs were let’s just say, kicked in on February 1, right, can you just sort of take me through how it impacts the channel, like who actually gets impacted as a product that costs $100 would have then cost $125? Like who takes on that responsibility, where does that cost end up from you from a sourcing perspective, the distributor that might have the product, the provider that might have to use that product or the insurer that would have to reimburse the product or the consumer? Like where does that extra money, who gets affected by that? It’s somewhat unclear now.

Michael Alkire - Premier, Inc. - President, CEO & Director

So just look, it depends on how the tariff is actually implemented. So I’m going to answer it with a bit of a comment that sort of covers my answer. So it depends on how the tariff actually gets implemented. That’s number one.

Number two, if a tariff actually gets applied to a product, and you know this, even if there’s political commentary about how we’re going to do a tariff on a country there’s always this subtext of, well, maybe it doesn’t apply to medical devices or medical spend or different things. So you have to really pay attention to the detail of what actually is going to be included in that tariff.

Having said that, a tariff is just like you would think, if there’s a 10% tariff on a product that’s $1, the net product is going to be $1.10 to the consumer, to the seller of that product. And so, for example, if somebody has a product that gets manufactured partially in China, their cost to actually produce that product is going to go up, that commits or amount. That’s the reason that it is really important that we have these firm for term pricing in our agreements so that price as much as possible, as much as possible does not end up with having the health systems, the hospitals and the providers pay for that given that they’re not getting increased reimbursement to cover that cost.

So those contracts do matter in terms of how you contract those. But that’s the best I can give you an answer around just because it’s such a - it’s a volatile sort of situation in terms of what’s really happening and how these things get applied.

Operator

Eric Coldwell, Robert W. Baird.

Eric Coldwell - Robert W. Baird & Co., Inc. - Analyst

Thanks very much. I have two or three, if you don’t mind. First one coming in from an investor and something we were curious about as well. The $17.6 million distribution from the minority investment. Was that OMNIA or something else? And could you talk about its recurring or onetime nature? And then most specifically, is that included in adjusted EBITDA, net income or earnings, there was a little bit of confusion about where the distribution wound up in your adjusted numbers or how it’s embedded in your guidance going forward?

Michael Alkire - Premier, Inc. - President, CEO & Director

Yes. So that distribution came from one of our minority partners. It did not come from OMNIA. It is really onetime. I say onetime, it could happen every couple of years, but it’s not an annual type distribution. And we did adjust it out of our numbers. So it’s not included in our results.

Eric Coldwell - Robert W. Baird & Co., Inc. - Analyst

Perfect. Thanks very much. And then for me, more specifically, there was a mention of - in the end of the prepared remarks, there was a mention of a member departure that’s going to be phased over multiple years, it sounds. Could you provide any more detail on that and why it’s a multiyear phase out? And then were there onetime payments associated with that departure? Or will there be in the future?

Michael Alkire - Premier, Inc. - President, CEO & Director

Yes. This is Mike. So a couple of things that obviously, that scenario is still kind of moving around as well. So that partnership that occurred, we are still providing services in there. So that’s the reason you saw that part - that multiyear sort of comment.

Like, for example, there are parts of the portfolio they still want to leverage because they’re the strongest in the industry. And so they want to leverage those as far as long, they can leverage those. So that’s the reason that you’re going to see this over time. And I still think it’s very fluid. So we’re still working through what that looks like. Having said that, yes, there was a onetime contractual - Glenn, go ahead.

Glenn Coleman - Premier, Inc. - Chief Administrative and Financial Officer

I would just say the onetime payment we haven’t received yet. It’s coming in the fourth quarter.

Eric Coldwell - Robert W. Baird & Co., Inc. - Analyst

How much - Glenn, how much is that payment? And I assume that is embedded in the guidance.

Glenn Coleman - Premier, Inc. - Chief Administrative and Financial Officer

It’s embedded in the guidance, and we are not disclosing the actual amount of payment. But it’s in the guidance, and it’s one of the reasons why we’re taking our Supply Chain Services number up by $25 million at the midpoint.

Eric Coldwell - Robert W. Baird & Co., Inc. - Analyst

Okay. Thanks very much.

Operator

Jessica Tassan, Piper Sandler.

Jessica Tassan - Piper Sandler Companies - Analyst

Hi, guys. Thank you for taking the questions and congrats on the strong results. I was just hoping to come back to just the firm for the term pricing comments. So can you just be clear on that, does that imply that Premier would be on the hook for tariffs and that the customers or your member organizations would be kind of insulated from pricing pressure? Or is the firm for the term embedded in your supplier contracts that Premier would maintain unchanged price guarantees for whatever period of time?

Michael Alkire - Premier, Inc. - President, CEO & Director

No, good question. No, that is embedded in the contracts. So that’s not something that Premier is on the hook for. That is a - that’s the supplier who provides those products, they are the ones that have to absorb those tariffs, not Premier. And then obviously, if it’s firm for the term, not the health systems as well.

Jessica Tassan - Piper Sandler Companies - Analyst

Got it. That’s really helpful. And then I wanted to ask just kind of in light of the tariff environment, can you comment on the extent to which you think that within gross purchasing volume, you saw any pull forward and then the extent to which guidance kind of contemplates that, that pull forward moderates with or without, moderates in the second half of your fiscal year?

Michael Alkire - Premier, Inc. - President, CEO & Director

I think the answer to that, Jessica, is it’s too early to tell. I will have to get back to you with any specifics if, in fact, we felt any of that. But at this point, I think it’s going to be too early to tell as to whether or not there was any substantial purchasing in light of people worried about a tariff.

Jessica Tassan - Piper Sandler Companies - Analyst

Okay. That’s helpful. And then, I guess, maybe my last one. I think you mentioned just that in your prospecting conversations, the kind of two dozen you had at JPMorgan, you guys were selling SCS digital supply chain services. Can you just remind us like how that is distinct from the initial offering or just what additional kind of wraparounds are provided there that are appealing to prospects?

Michael Alkire - Premier, Inc. - President, CEO & Director

Sure. So I think the number one most appealing opportunity for our supplier partners is really focused around what Glenn was talking about, which is access to the data. And then we do a whole bunch of stuff, we’re like around real-world evidence studies, which is really all about how to ensure that products that are being launched are actually driving the clinical value that they’re supposed to be driving and that there really is true innovation that’s actually happening.

So then when you start to sort of layer in also some of the supply data, it also gives perspective on what’s happening from a cost basis. So are there real-world evidence opportunities that also are having a dramatic impact on the cost associated with the category. So those are some of the nuances of what we’re talking to these suppliers around, but it’s really just combining the two different data cycles, so two different data points.

Jessica Tassan - Piper Sandler Companies - Analyst

Thanks, again.

Operator

Richard Close, Canaccord Genuity.

Richard Close - Canaccord Genuity - Analyst

Yes. Thanks for the question. Just curious to dig in a little bit more on the consulting services. It seems more negative than in the past, commenting on a turnaround here - just if you could just dig in a little bit deeper on that. What exactly is going on in that business? And what are the proposed changes?

Michael Alkire - Premier, Inc. - President, CEO & Director

Yes. I think I hit it a little bit. I think a couple of things that when - as we refresh the business, I think it’s probably a better way to say that. There’s still a significant need on behalf of the health systems from a performance improvement standpoint, obviously, significant opportunities around helping our health systems deal with issues associated with labor. Obviously, huge opportunities as our health systems are thinking through using advanced technology and the like.

We’re just constantly looking at ways that we could refresh our advisory services capability to bring that additional value to the customer that’s all around performance improvement. What are those things that historically, especially those back-office functions that historically have been manual, are there ways that we can technology-enable those things, are there ways that we can do co-management capabilities to obviously reduce the overall cost for these providers in a time where they’re looking for any way to really reduce those cost curves.

So it’s really all about building up those capabilities and making the appropriate investment in those so that for the long term, we’ve got a robust offering that’s really meeting the needs of the market.

Richard Close - Canaccord Genuity - Analyst

Okay. And then, Glenn, maybe on Applied Sciences, you talked about license going to subscription. Is that the product mix you’re talking about? Or is it something else?

Glenn Coleman - Premier, Inc. - Chief Administrative and Financial Officer

Yes, that’s the product mix.

Richard Close - Canaccord Genuity - Analyst

Okay. And then final question with respect to Contigo, can you talk a little bit about that sale? And then you said there’s some additional assets ongoing? What’s left? Any details there?

Glenn Coleman - Premier, Inc. - Chief Administrative and Financial Officer

Sure. So we did sell the network assets of Contigo in January for $15 million. It’s obviously subject to normal working capital adjustments. So we’ve disclosed that in our 10-Q filing. We are still moving forward with selling the third-party administrative aspect of the business and COE or center of excellence. So that’s still in process of being divested. I don’t have an update on that at this point in time.

Richard Close - Canaccord Genuity - Analyst

Thank you.

Operator

Allen Lutz, Bank of America.

Allen Lutz - BofA Global Research - Analyst

Good morning and thanks for taking the questions. One for Glenn. You talked about gross admin fees of about 5% year-to-date. Can you talk about what’s embedded in the updated net admin fee guide as it relates to gross admin fees and then as we think about the utilization in the business in the tail end of calendar ‘24 versus 2025, is there anything different you’re expecting as we flip the calendar year? Thanks.

Glenn Coleman - Premier, Inc. - Chief Administrative and Financial Officer

I think in terms of our guide, we’re being a little bit conservative on our gross admin fees, meaning I’m assuming a slower or a lower number than what we saw in the first half of the year. Not based on anything in terms of what I’m seeing in the business, but more just to be a bit conservative. So there’s an opportunity to potentially overachieve there.

But in the guide, I would say we’ve got a lower number versus the 5% that we generated in the first half of the year. And then, obviously, when we look at kind of the ‘24 versus ‘25 numbers, we do have one time member payment that’s coming in in Q4 of this year.

Allen Lutz - BofA Global Research - Analyst

Great. Thanks.

Operator

Bill Sutherland, The Benchmark Company.

Bill Sutherland - The Benchmark Company LLC - Analyst

Thank you. Hey, good morning, guys. Thinking about the - your sourcing percentages, have you all ever talked about kind of where you stand in terms of the geographies that you’re sourcing from at this point?

Michael Alkire - Premier, Inc. - President, CEO & Director

We don’t get into specifics, but over time, you’ve heard us refer to having an overdependence on one specific country, for example, like China, and that our focus has been to create more diversity in that. And so yes, we don’t get into specific numbers but like, for example, we are very supportive of moving example of production to Malaysia, for example, and isolation gowns to other countries in Southeast Asia and those kinds of things. But it has been a practice of ours for a number of years certainly since COVID to create more diversity in the production of those products. So we will continue to look at all those kinds of things as that’s really important to creating a healthy supply chain.

Bill Sutherland - The Benchmark Company LLC - Analyst

Right. And so, did you even talk as broadly as just AsiaPac, for instance?

Michael Alkire - Premier, Inc. - President, CEO & Director

No. We don’t spend a lot of time - first of all, it moves very, very quickly. Somebody comes up with production of a product, and it could be a large percentage of a category, and then that potentially changes in a couple of years because we’re able to get lower priced product somewhere else. So we’re very thoughtful around how that movement occurs.

I think the most important thing is that we want to make sure we have the capability to truly understand where that production capability is and then helping the suppliers who produce those products through those contract manufacturers point them in the right direction where they could get high-quality products to produce.

Bill Sutherland - The Benchmark Company LLC - Analyst

Okay. And on the firm for term, just wondering, is this a one-year contract typically that - and are these continually being recontracted?

Michael Alkire - Premier, Inc. - President, CEO & Director

Yes. Typically, our contracts as soon as I say this, it won’t be accurate. But typically, our contracts are three-year contracts. But we do have some contracts that are less than that. But for the most part, they’re three-year agreements.

Bill Sutherland - The Benchmark Company LLC - Analyst

Okay. Thanks, Mike.

Operator

This concludes our question-and-answer session and Premier’s fiscal 2025 second quarter conference call. Thank you for attending today’s presentation. You may now disconnect.

Exhibit 99.3

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Fiscal 2025 Second-Quarter Earnings Conference Call February 4, 2025

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Forward-Looking Statements and Non-GAAP Financial Measures Forward-looking statements – Statements made in this presentation and the accompanying webcast that are not statements of historical or current facts, such as those related to our ability to advance our business strategies and improve healthcare, our ability to find a partner for our Contigo Health business and the potential benefits thereof, our ability to fund and conduct share repurchases pursuant to the outstanding share repurchase authorization and the potential benefits thereof, the payment of dividends at current levels or at all, guidance on expected future financial performance and assumptions underlying that guidance, and our expected effective income tax rate are “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995. Forward-looking statements may involve known and unknown risks, uncertainties and other factors that may cause the actual results, performance or achievements of Premier to be materially different from historical results or from any future results or projections expressed or implied by such forward-looking statements. Accordingly, readers should not place undue reliance on any forward-looking statements, the achievement of which cannot be guarantee. In addition to statements that explicitly describe such risks and uncertainties, readers are urged to consider statements in the conditional or future tenses or that include terms such as “believes,” “belief,” “expects,” “estimates,” “intends,” “remains committed to,” “anticipates” or “plans” to be uncertain and forward-looking. Forward-looking statements may include comments as to Premier’s beliefs and expectations as to future events and trends affecting its business and are necessarily subject to risks and uncertainties, many of which are outside Premier’s control. More information on risks and uncertainties that could affect Premier’s business, achievements, performance, financial condition, and financial results is included from time to time in the “Cautionary Note Regarding Forward-Looking Statements,” “Risk Factors” and “Management’s Discussion and Analysis of Financial Condition and Results of Operations” sections of Premier’s periodic and current filings with the SEC, including the information in those sections of Premier’s Form 10-K for the year ended June 30, 2024 as well as Premier’s subsequent Quarterly Reports on Form 10-Q, including the Form 10-Q for the quarter ended December 31, 2024, expected to be filed with the SEC shortly after this presentation. Premier’s periodic and current filings with the SEC are made available on the company’s website at investors.premierinc.com. Forward-looking statements speak only as of the date they are made, and Premier undertakes no obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events that occur after that date, or otherwise. Non-GAAP financial measures – This presentation and accompanying webcast include certain “adjusted” and other “non-GAAP” financial measures, including free cash flow, as defined in the SEC’s Regulation G. These measures are not in accordance with, or an alternative to, GAAP. This presentation and the Appendix to this presentation include schedules that reconcile the historical non-GAAP financial measures included in this presentation to the most directly comparable GAAP financial measures. You should carefully read Premier’s earnings release and Quarterly Report on Form 10-Q for the quarter ended December 31, 2024, expected to be filed shortly after this presentation, for definitions of Premier’s non-GAAP financial measures and further explanation and disclosure regarding Premier’s use of non-GAAP financial measures, and such information should be read in conjunction with this presentation. These materials are made available on the company’s website at investors.premierinc.com. © 2025. ALL RIGHTS RESERVED. | PREMIER INC. | 2

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Business Review Financial Review Michael J. Alkire Glenn Coleman President and Chief Administrative and Chief Executive Officer Financial Officer

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Key Points Revenue and profitability were in line with overall expectations for the first half of fiscal 2025 • Supply Chain Services segment did better than expected • Performance Services segment did not achieve our objectives Reaffirming the midpoints for total net revenue and adjusted EBITDA guidance ranges and increasing the midpoint for adjusted EPS guidance range Continuing to make progress and provide value in Supply Chain Services • Digital supply chain strategy continues to evolve; new engagement with major partner • Leveraging our capabilities to help manufacturers navigate the 503B program Taking actions to reinvigorate Performance Services • David Zito joined as new President of the segment • Recruiting new talent with a strong track record • Refocusing our solutions and go-to-market strategy around our key areas of differentiation • Leveraging our performance improvement collaboratives more broadly in the market • Extending our unique AI capabilities to new use cases © 2025. ALL RIGHTS RESERVED. | PREMIER INC. | 4

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Fiscal 2025 Second Quarter Financial Overview [1] Metric Comparison to Q2 FY24 Comments Consolidated Net Revenue Decreased 14% • Increased fee share in GPO Supply Chain Services Net Revenue Decreased 11% • Increased penetration of member spend in GPO • Growth in supply chain co-management • Lower demand in consulting services Performance Services Net Revenue Decreased 19% • Unfavorable product mix in applied sciences GAAP Net Loss from Continuing Operations Decreased 191% • Goodwill impairment of $126.8 million • Goodwill impairment GAAP EPS from Continuing Operations Decreased 240% • Benefitted from share repurchases Adjusted EBITDA [2] Decreased 48% • Driven by decrease in revenue Adjusted Net Income [2] Decreased 61% • Driven by decrease in revenue • Driven by decrease in revenue Adjusted EPS [2] Decreased 51% • Benefitted from share repurchases [1] On October 1, 2024, the company announced that it had divested its ownership position in the S2S Global direct sourcing business. As such, and unless stated otherwise, all results presented in this presentation reflect those of continuing operations. In addition, as certain components of the divestiture process for the Contigo Health business remain ongoing, results presented in this presentation will continue to include contributions from that business. [2] These are non-GAAP financial measures. Refer to the Appendix for adjusted EBITDA, adjusted net income, adjusted earnings per © 2025. ALL RIGHTS RESERVED. | PREMIER INC. | 5 share reconciliations to the corresponding GAAP measures.

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Strong financial position with a flexible balance sheet As of and for the six-month period ended December 31, 2024 Cash flow from operations of $193.7 million Free cash flow* of $73.9 million Cash and cash equivalents of $85.9 million Balance of $100 million on $1.0 billion unsecured, revolving credit facility; repaid $65 million in January Repurchased over 29 million shares of Class A common stock under the company’s $1 billion share repurchase authorization since February 2024 Paid dividends of $42.4 million to stockholders in first half fiscal 2025 Dividend yield of ~4% in calendar year 2024 Board declared a dividend of $0.21 per share payable in March * This is a non-GAAP financial measure. Refer to the Appendix for a © 2025. ALL RIGHTS RESERVED. | PREMIER INC. | 6 reconciliation of free cash flow to the corresponding GAAP measure.

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Fiscal 2025 Guidance Fiscal 2025 Previous Fiscal 2025 Guidance Metric Guidance Range* Guidance Range* Comments (as of February 4, 2025) (as of November 5, 2024) Total Net Revenue Excluding Contigo Health $940 million to $1.01 billion $930 million to $1.02 billion No change to midpoint Segment Revenue: Supply Chain Services $590 million to $630 million $560 million to $610 million Increased midpoint $25 million Performance Services Excluding Contigo Health $350 million to $380 million $370 million to $410 million Decreased midpoint $25 million Adjusted EBITDA $237 million to $253 million $235 million to $255 million No change to midpoint Adjusted Net Income $119 million to $129 million Not previously disclosed New disclosure Adjusted EPS $1.26 to $1.34 $1.16 to $1.28 Increased midpoint $0.08 Diluted Weighted Average Shares 94 million to 96 million Not previously disclosed New disclosure Fiscal 2025 guidance is based on the realization of the following key assumptions: • Net administrative fees revenue of $525 million to $545 million (previously: $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 24% to 26% (previously: 25% to 27%) • Cash income tax rate of less than 5% • Free cash flow of 45% to 55% of adjusted EBITDA * Adjusted EBITDA, adjusted net income, adjusted EPS and free cash flow are forward-looking non-GAAP measures. Premier does not provide a reconciliation of non-GAAP forward-looking guidance as certain financial information, the probable significance of which cannot be determined, is not available and cannot be reasonably estimated. Refer to “Use of Forward-Looking Non-GAAP Measures” on slide 11 for additional explanation. Also, Total Net Revenue Excluding Contigo © 2025. ALL RIGHTS RESERVED. | PREMIER INC. | 7 Health is a forward-looking non-GAAP measure. Refer to “Changes impacting fiscal 2025 reporting and guidance” on slide 9 as well as slide 11 for additional explanation.

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Appendix

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Changes Impacting Fiscal 2025 Reporting and Guidance â– On October 1, 2024, the company announced that it had divested its ownership position in the S2S Global direct sourcing business. As such, and unless stated otherwise, all results presented in this presentation reflect those of continuing operations. In addition, as certain components of the divestiture process for the Contigo Health business remain ongoing, results presented in this presentation continue to include contributions from that business. â– As a result of our previously announced plan to divest majority interests in our Contigo Health, we are presenting guidance excluding any financial contributions from this business for fiscal 2025. â– In conjunction with the evolution of our digital supply chain strategy to more tightly align Remitra’s strategic and operational capabilities with our GPO, we have determined it is more appropriate to report the Remitra business as part of the Supply Chain Services segment beginning in fiscal 2025. â– Based upon shareholder and analyst feedback, we decided it is appropriate, following the close of the sale of our non-healthcare GPO operations, to exclude the impact of the OMNIA transaction including associated revenues sold, imputed interest expense and cash taxes paid on proceeds received from our non-GAAP profitability measures moving forward. Accordingly, effective for fiscal year 2025, we present our adjusted EBITDA, adjusted net income, adjusted EPS and free cash flow on a comparable basis, excluding these impacts from the OMNIA transaction. © 2025. ALL RIGHTS RESERVED. | PREMIER INC. | 9

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Supplemental Financial Information Reconciliation of Certain Financial Measures to Adjust for Contigo Health (U naudited) (In thousands) Performance Services Total Prem ier, Inc. Three Months Ended Six Months Ended Three Months Ended Six Months Ended December 31, December 31 , December 31 , December 31 , 2024 2023 2024 2023 2024 2023 2024 2023 Net Revenue Cal $ 91 ,520 $ 113,649 $ 188,274 $ 219,399 $ 240,266 $ 279,871 $ 488,408 $ 548,897 Less: Contigo Health (8,045) (10,627) (15,691 ) (20,784) (8,045) (10,627) (15,691 ) (20,784) Net Revenue excluding Contigo Health caJ $ 83,475 $ 103,022 $ 172,583 $ 198,615 $ 232,221 s 269,244 s 472,717 s 528,113 Adjusted EBITDA $ 50,090 $ 96,419 $ 112,518 $ 189,727 Less: contigo Health Cbl 1,976 1,338 4,203 4,068 Adjusted EBITDA excluding Contigo Health $ 52,066 s 97,757 $ 116,721 $ 193,795 Adjusted EPS $ 0 .25 $ 0.51 $ 0 .60 $ 0 .97 Less: Contigo Health !bl 0 .02 0.02 0 .05 0. 05 Adjusted EPS excluding Contigo Health $ 0.27 s 0.53 $ 0.65 $ 1.02 a. Perfonnance Services includes inlersegment revenue that is eliminated in consolidation. b. Contigo HeaHh Adjusted EBITDA and Adjusted EPS were losses and therefore added back to the total. Reconciliation of Certain Financial Measures to Adjust for Contigo Health Note: Net Revenue excluding Contigo Health, Adjusted EBITDA, Adjusted EBITDA excluding Contigo Health, Adjusted EPS and Adjusted EPS excluding Contigo Health are non-GAAP financial measures. Refer to the later slides in this Appendix for reconciliations of Adjusted EBITDA, Adjusted EBITDA excluding Contigo Health, Adjusted EPS and Adjusted EPS excluding © 2025. ALL RIGHTS RESERVED. | PREMIER INC. | 10 Contigo Health to the corresponding GAAP measures.

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Use of Forward-Looking Non-GAAP Measures The company does not meaningfully reconcile guidance for non-GAAP adjusted EBITDA, non-GAAP adjusted net income and non-GAAP adjusted earnings per share to net income attributable to stockholders or earnings per share attributable to stockholders (and accordingly does not meaningfully reconcile free cash flow guidance, which is based on adjusted EBITDA) because the company cannot provide guidance for the more significant reconciling items between net income attributable to stockholders and each of these measures without unreasonable effort. This is due to the fact that future period non-GAAP guidance includes adjustments for items not indicative of our core operations, which may include, without limitation, items included in the supplemental financial information for reconciliation of reported GAAP results to non-GAAP results. Such items include, but are not limited to, strategic- and acquisition-related expenses for professional fees; mark to market adjustments for put options and contingent liabilities; gains and losses on stock-based performance shares; adjustments to its income tax provision (such as valuation allowance adjustments and settlements of income tax claims); items related to corporate and facility restructurings; and certain other items the company believes to be non-indicative of its ongoing operations. Such adjustments may be affected by changes in ongoing assumptions, judgements, as well as nonrecurring, unusual or unanticipated charges, expenses or gains/losses or other items that may not directly correlate to the underlying performance of our business operations. The exact amount of these adjustments is not currently determinable but may be significant. In addition, with respect to adjustments in our guidance for Contigo Health, the company does not meaningfully reconcile guidance to GAAP measures because Contigo Health is expected to be moved into discontinued operations in fiscal 2025. © 2025. ALL RIGHTS RESERVED. | PREMIER INC. | 11

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Supplemental Financial Information Reconciliation of Net Income from Conti nuing Operations to Adj usted EBI TDA Reconciliation of Operati ng Incom e to Segment Adjusted EBITDA Reconciliation of Net Income Attributable to Stockholders to Adjusted Net Income (Unaudited) (In thousands) Three Months Ended Six Months Ended December 31, December 31, 2024 2023 2024 2023 Net (loss) income from continuing operations $ (45,837) $ 50,448 $ 27,103 $ 92,217 Interest expense (income), net 3,787 (1,881) 5,543 (1,859) Income tax (benefit) expense (17,967) 18,341 4,744 32,072 Depreciation and amortization 20,002 20,267 39,653 40,595 Amortization of purchased intangible assets 9 537 12 399 19 174 24 952 EB ITDA (30,478) 99,574 96,217 187,9n Stock~based compensation 2,691 8,495 9,831 15,388 Acquisition- and disposition-related expenses (1 ,970) 1,198 914 7,403 Strategic initiative and financial restructuring-related expenses 1,883 1,284 1,993 3,030 Operating income from revenues sold to OMNIA (15,571 ) (14,797) (31 ,281) (26,463) Equity in net (income) loss of unconsolidated affiliates (9,502) 666 (11 ,335) 2,392 Other non-operating gains (5,430) (62,674) Impairment of assets 126,818 126,818 Other reconciling items, net (18.351 ) {1l (17.965) Adjusted EBITDA s 50,090 $ 96 419 $ 112,518 s 189 727 1 Less: Contigo Health l•l 1 976 1 338 4 203 4 068 Adjusted EBITDA excluding Contigo Heah:h $ 52,066 ~ 97,757 $ 116,721 ~ 193,795 a. Contigo Health Adjusted EBITDA were tosses and therefore added back to the total. Fiscal 2025 and 2024 Non-GAAP Reconciliations © 2025. ALL RIGHTS RESERVED. | PREMIER INC. | 12

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Fiscal 2025 and 2024 Non-GAAP Reconciliations Supplemental Financial Information Reconciliation of Net Income from Conti nuing Operations to Adjusted EBITDA Reconciliation of Operati ng Income to Segment Adjusted EBITDA Reconciliation of Net Income Attributable to Stock holders to Adjusted Net Income (Unaudited) (In thousands) Three Months Ended Six Months Ended December 31, December 31, 2024 2023 2024 2023 (Loss) income before income taxes $ (&3,804) $ 68,789 $ 31,847 $ 124,289 Equity in net (income) loss of unconso~dated affiliates (9,502) 666 (11 ,335) 2,392 Interest expense (income), net 3,787 (1,881) 5,543 (1,859) Other income, net {23.304} {4.679} {83,563) (3,58Z) Operating (loss) income (92,823) 62,895 (57,508) 121,235 Depreciation and amortization 20,002 20,267 39,653 40,595 Amortization of purchased intangible assets 9,537 12,399 19,174 24,952 Stock-based compensation 2,691 8,495 9,831 15,388 Acquisition- and disposition- related expenses (1,970) 1,198 914 7,403 Strategic initiative and financial restructuring-related expenses 1,883 1,284 1,993 3,030 Operating income from revenues sold to OMNIA (15,571) (14,797) (31 ,281 ) (26,463) Deferred compensation plan expense 221 4,605 2,913 3,480 Impairment of assets 126,818 126,818 Other reconciling ~ems, net (698} 73 11 107 Adjusted EBITDA $ 50,090 $ 96 41 9 $ 112 518 $ 189 727 SEGMENT ADJUSTED EBITDA Supply Chain Services $ 73,740 s 96,532 $ 151,251 $ 197,919 Performance Services 9123 31 205 24 072 54135 Total segment adjusted EBITDA 82,863 127,737 175,323 252,054 Corporate (32,773} {31,318} {62,805) {62,32Z) Adjusted EBITDA s 50,090 $ 96419 $ 112 518 $ 189 727 © 2025. ALL RIGHTS RESERVED. | PREMIER INC. | 13

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Fiscal 2025 and 2024 Non-GAAP Reconciliations Supplemental Financial Information Reconc iliation of Net Income from Continuing Operations to Adjusted EBITOA Reconciliation of Operating Income to Segment Adjusted EBITOA Reconciliation of Net Income Attributable to Stockholders to Adjusted Net Income (Unaudited) (In thousands) Three Months Ended Six Months Ended December 31 , December 31, 2024 2023 2024 2023 Net (loss) income attributable to stockholders $ (96,018) $ 54,302 $ (25,234) $ 99,063 Net loss (income) from discontinued operations, net of tax 39,389 (2,418) 40,993 (3,059) Income tax (benefit) expense (17,967) 18,341 4,744 32,072 Amortization of purchased intangible assets 9,537 12,399 19,174 24,952 Stock-based compensation 2,691 8,495 9,831 15,388 Acquisition- and disposition-related expenses (1 ,970) 1,198 914 7,403 Strategic initiative and financial restructuring-related expenses 1,883 1,284 1,993 3,030 Operating income from revenues sold to OMNIA (15,571) (14,797) (31,281) (26,463) Equity in net (income) loss of unconsolidated affiliates (9,502) 666 (11 ,335) 2,392 Other non-operating gains (5,430) (62,674) Impairment of assets 126,818 126,818 Other reconciling items, net (2,495) 3,717 3,741 5,347 Adjusted income before income taxes 31 ,365 83,187 77,684 160,125 Income tax expense on adjusted income before income taxes 7,528 22,461 18,644 43,234 Adj usted net income $ 23,837 $ 60,726 _____ $ 59,040 ; ....__ $ 116,891 © 2025. ALL RIGHTS RESERVED. | PREMIER INC. | 14

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Fiscal 2025 and 2024 Non-GAAP Reconciliations Supplemental Financial Information Reconciliation of Net Cash Provided by Operating Activities from Continuing Operations to Free Cash Flow (Unaudited) (In thousands) Six Months Ended December 31 , 2024 2023 Net cash provided by operating activities from continuing operations $ 193,733 $ 15,465 Early termination payments to certain former limited partners that elected to execute a Unit Exchange Agreement (50,529} (49,600) Purchases of property and equipment (39,877} (49,068) Cash payments to OMNIA for the sale of future revenues (29,428} (14,61 1) Cash tax payments on proceeds received from the sale of future revenues 138,476 Free cash flow $ 73,899 $ 40,662 © 2025. ALL RIGHTS RESERVED. | PREMIER INC. | 15

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Fiscal 2025 and 2024 Non-GAAP Reconciliations Supplemental Financial Information Reconciliation of GAAP EPS to Adjusted EPS (Unaudited) (In thousands, except per share data) Three Months Ended Six Months Ended December 31 , December 31 , 2024 2023 2024 2023 Net (loss) income attributable to stockholders $ (96,018) $ 54,302 $ (25,234) $ 99,063 Net loss (income) from discontinued operations, net of tax 39,389 (2,418) 40,993 (3,059) Income tax (benefit) expense (17,967) 18,341 4,744 32,072 Amortization of purchased intangible assets 9,537 12,399 19,174 24,952 Stock-based compensation 2,691 8,495 9,831 15,388 Acquisition- and disposition-related expenses (1,970) 1,198 914 7,403 Strategic initiative and financial restructuring-related expenses 1,883 1,284 1,993 3,030 Operating income from revenues sold to OMNIA (15 ,571) (14,797) (31 ,281) (26,463) Equity in net (income) loss of unconsolidated affiliates {9,502) 666 (11 ,335) 2,392 Other non-operating gains (5,430) (62,674) Impairment of assets 126,818 126,818 Other reconciling items. net {2,495) 3,717 3,741 5,347 Adjusted income before income taxes 31 ,365 83,187 77,684 160,125 Income tax expense on adjusted income before income taxes 7,528 22,461 18,644 43,234 Adjusted net income $ 23,837 $ 60,726 $ 59,040 $ 116,891 © 2025. ALL RIGHTS RESERVED. | PREMIER INC. | 16

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Fiscal 2025 and 2024 Non-GAAP Reconciliations Supplemental Financial Information Reconciliation of GAAP EPS to Adjusted EPS (Unaudited) (I n thousands, except per share data) Three Months Ended Six Months Ended December 31, December 31, 2024 2023 2024 202.3 Weighted average: Basic weighted average shares outstanding 94,765 119,702 97,573 119,523 Dilutive shares 429 355 520 572 Weighted average shares outstanding -diluted 95194 120 057 98 093 120 095 Basic earnings per share attributable to stockholders $ (1 .01) $ 0.45 s (0.26) s 0.83 Net loss (income) from discontinued operations, net of tax 0.42 (0.02) 0.42 (0.03) Income tax (benefrt) expense (0.19) 0.1 5 0.05 0.27 Amortization of purchased intangible assets 0.10 0.10 0.20 0.21 Stock-based compensation 0.03 0.07 0.1 0 0.13 Acquisition- and disposition-related expenses (0.02) 0.01 0.01 0.06 Strategic initiative and financial restructuring-related expenses 0.02 0.01 0.02 0.03 Operating income from revenues sold to OMNIA (0.16) (0.12) (0 .. 32) (0.22) Equity in net (income) loss of unconsolidated affiliates (0.10) 0.01 (0.12) 0.02 Other non-operating gains (0.06) (0.64) Impairment of assets 1.34 1.30 Other reconcmng items, net (0.04) 0.04 0.03 0.03 Impact of corporation taxes _______,l( ::,;0· ::.;08~) ———-l=.:(0.19) :~ ——-....l ::. (0.19) ;~ (0.36} Adjusted earnings per share $ 0.25 _,$’———==-’- 0.51 -’’———==- $ 0.60 ~ 0.97 Less: Contigo Health 1•1 0.02 0.02 0.05 0.05 Adjusted earnings per share excluding Contigo Health $ 0.27 ....::S:....._____ 0. =:: 53 ... ....$ ::: ....._____ 0. =:: 65 ... ....s ::: ....._____ 1. .: :.02 :::; a. Contigo Health Adjusted earnings per share were losses and therefore added back to the total. © 2025. ALL RIGHTS RESERVED. | PREMIER INC. | 17

Document and Entity Information	Feb. 04, 2025
Cover [Abstract]
Amendment Flag	false
Entity Central Index Key	0001577916
Document Type	8-K
Document Period End Date	Feb. 04, 2025
Entity Registrant Name	Premier, Inc.
Entity Incorporation State Country Code	DE
Entity File Number	001-36092
Entity Tax Identification Number	35-2477140
Entity Address, Address Line One	13034 Ballantyne Corporate Place
Entity Address, City or Town	Charlotte
Entity Address, State or Province	NC
Entity Address, Postal Zip Code	28277
City Area Code	(704)
Local Phone Number	357-0022
Written Communications	false
Soliciting Material	false
Pre Commencement Tender Offer	false
Pre Commencement Issuer Tender Offer	false
Security 12b Title	Class A Common Stock, $0.01 Par Value
Trading Symbol	PINC
Security Exchange Name	NASDAQ
Entity Emerging Growth Company	false

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