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Discontinued Operations | 12 Months Ended
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Dec. 31, 2025
Discontinued Operations and Disposal Groups [Abstract] |
Discontinued Operations | 2. Discontinued Operations On January 17, 2025, BrightSpring entered into a definitive agreement to sell its Community Living business to National Mentor Holdings, Inc. (the “Purchaser”), for $835.0 million in cash upon closing, subject to certain post-closing adjustments. We entered into the transaction in order to streamline our service offerings and further focus on the senior and specialty populations. The transaction is currently expected to close in the first fiscal quarter of 2026, subject to receipt of customary regulatory approvals and other closing conditions. The Company has determined the divestiture of the Community Living business represents a strategic shift that will have a major effect on its business and has concluded the criteria for classification as discontinued operations were met during the first fiscal quarter of 2025. Accordingly, the Community Living business is reported as discontinued operations in accordance with ASC 205-20, Discontinued Operations. The related assets and liabilities of the Community Living business are classified as assets and liabilities held for sale in the accompanying consolidated balance sheets and the results of operations from the Community Living business are classified as discontinued operations in the consolidated statements of operations. Applicable amounts in prior years have been retrospectively revised and recast to conform to this discontinued operations presentation. The Community Living business was historically presented as a part of the Provider Services reportable segment. In accordance with ASC 205-20, Allocation of Interest to Discontinued Operations, the Company elected to allocate interest expense to discontinued operations for the Company’s debt that is not directly attributed to the Community Living business. Interest expense was allocated based on a ratio of net assets held for sale to the sum of consolidated net assets and consolidated debt. In addition, upon closing of the divestiture, we will enter into a transition services agreement (“TSA”) with the Purchaser to support the Purchaser's post-closing operations of the Community Living business by providing the Purchaser with certain transition services in exchange for service fees in the form of both fixed-price and pass through costs. Transition services will primarily include human resources, IT, facilities management, and compliance. The financial results of the Community Living business are presented as income from discontinued operations on our consolidated statements of operations. The following table presents the financial results of the Community Living business (in thousands):
| For the Years Ended December 31, |
| 2025 |  |  | 2024 |  |  | 2023 |
Services revenue | $ | 1,234,403 |  |  | $ | 1,194,258 |  |  | $ | 1,135,159 |
Cost of services |  | 840,172 |  |  |  | 872,250 |  |  |  | 840,361 |
Gross profit |  | 394,231 |  |  |  | 322,008 |  |  |  | 294,798 |
Selling, general, and administrative expenses |  | 254,753 |  |  |  | 223,588 |  |  |  | 205,743 |
Operating income of discontinued operations |  | 139,478 |  |  |  | 98,420 |  |  |  | 89,055 |
Interest expense, net |  | 29,917 |  |  |  | 37,840 |  |  |  | 52,694 |
Income from discontinued operations before income taxes |  | 109,561 |  |  |  | 60,580 |  |  |  | 36,361 |
Income tax expense from discontinued operations |  | 25,244 |  |  |  | 12,170 |  |  |  | 10,930 |
Income from discontinued operations, net of income taxes | $ | 84,317 |  |  | $ | 48,410 |  |  | $ | 25,431 |
The following table presents the aggregate carrying amounts of assets and liabilities held for sale for the Community Living business in the consolidated balance sheets (in thousands):
|  | December 31, 2025 |  |  | December 31, 2024 |
Assets |  |  |  |  |  |
Current assets: |  |  |  |  |  |
Cash and cash equivalents |  | $ | 107 |  |  | $ | 299 |
Accounts receivable, net of allowance for credit losses |  |  | 136,875 |  |  |  | 125,872 |
Inventories |  |  | 3,294 |  |  |  | 4,007 |
Prepaid expenses and other current assets |  |  | 2,717 |  |  |  | 1,269 |
Total current assets held for sale |  |  | 142,993 |  |  |  | 131,447 |
Property and equipment, net of accumulated depreciation of $104,314 and $110,417 at December 31, 2025 and 2024, respectively |  |  | 83,465 |  |  |  | 69,715 |
Goodwill |  |  | 307,640 |  |  |  | 307,640 |
Intangible assets, net of accumulated amortization |  |  | 216,192 |  |  |  | 216,258 |
Operating lease right-of-use assets, net |  |  | 129,005 |  |  |  | 88,717 |
Deferred income taxes, net |  |  | — |  |  |  | 287 |
Other assets |  |  | 2,894 |  |  |  | 5,343 |
Total assets held for sale |  | $ | 882,189 |  |  | $ | 819,407 |
Liabilities |  |  |  |  |  |
Current liabilities: |  |  |  |  |  |
Trade accounts payable |  | $ | 25,081 |  |  | $ | 17,366 |
Accrued expenses |  |  | 59,038 |  |  |  | 60,791 |
Current portion of obligations under operating leases |  |  | 32,749 |  |  |  | 30,755 |
Current portion of obligations under financing leases |  |  | 7,691 |  |  |  | 8,651 |
Total current liabilities held for sale |  |  | 124,559 |  |  |  | 117,563 |
Obligations under operating leases, net of current portion |  |  | 57,771 |  |  |  | 58,147 |
Obligations under financing leases, net of current portion |  |  | 12,766 |  |  |  | 18,461 |
Deferred income taxes, net |  |  | 390 |  |  |  | — |
Long-term liabilities |  |  | 508 |  |  |  | 569 |
Total liabilities held for sale |  | $ | 195,994 |  |  | $ | 194,740 |
In accordance with ASC 205-20, all assets and liabilities held for sale are reported as current on the consolidated balance sheet at December 31, 2025 as the Community Living transaction is expected to close within one-year of the balance sheet date. The presentation of assets and liabilities held for sale on the consolidated balance sheet at December 31, 2024 are reported as current and noncurrent, consistent with the conclusion in the period, as the transaction did not meet the requirements of held for sale at that point in time. The following table presents the significant non-cash items and purchases of property and equipment for the discontinued operations that are included in the accompanying consolidated statements of cash flows (in thousands):
| For the Years Ended December 31, |
| 2025 |  |  | 2024 |  |  | 2023 |
Cash flows from operating activities of discontinued operations: |  |  |  |  |  |  |  |
Depreciation and amortization | $ | 1,329 |  |  | $ | 42,338 |  |  | $ | 41,779 |
Share-based compensation |  | 10,934 |  |  |  | 7,838 |  |  |  | 137 |
Impairment of long-lived assets |  | — |  |  |  | 6,238 |  |  |  | 8,134 |
Cash flows from investing activities of discontinued operations: |  |  |  |  |  |  |  |
Purchases of property and equipment |  | 12,313 |  |  |  | 10,429 |  |  |  | 11,983 |

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- Definition The entire disclosure related to a disposal group. Includes, but is not limited to, a discontinued operation, disposal classified as held-for-sale or disposed of by means other than sale or disposal of an individually significant component. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 205 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/205-20/tableOfContent Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Topic 360 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/360/tableOfContent + Details
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