Recently, Atlanta-based Guardian Pharmacy Services joined the Russell 2000 Index. One of a select group of operating companies bold enough to go public last fall, the 20-year-old business had a solid story for investors: $1 billion in annual revenue, positive net income and a growing market: the increasing number of older Americans residing in assisted living communities and long-term healthcare facilities.
Operating 50 pharmacies serving 180,000 patients in 37 states, Guardian Pharmacy has had a conservative financial strategy from day one, and David Morris, executive vice president and CFO, has been the architect of it since the company’s founding.
Our Katie Kuehner-Hebert recently interviewed Morris to understand how he and the larger organization are dealing with the transition to being listed and the emerging challenges for healthcare industry CFOs.
After 20 years as a private company, Guardian Pharmacy Services went public in September 2024. Looking back, what are your key takeaways on how to handle that transition?
After going through the process, I’m more confident that a successful transition from private to public takes years of preparation. Becoming a public company is not an overnight achievement; It requires thoughtful, long-term planning.
While Guardian Pharmacy Services was officially listed on the New York Stock Exchange this fall, we started preparing early. Over the past 10 years, we’ve been laying a solid foundation, partnering with key advisors and operating as if we were already public. It helped us avoid a reactive scramble.
Our fiscal approach also paid off. Since the company’s founding 20 years ago, we have followed a low-debt, low-leverage strategy. That financial discipline and steady focus over the years positioned us to accomplish this milestone.
Equally important is the team behind the business. Guardian is built around exceptional local pharmacy leaders whose expertise and dedication have driven consistent, profitable growth. Their efforts have been particularly critical over the last decade, as we prepared to go public.
The transition from private to public requires disciplined growth, financial stewardship, a unified team working toward the same goal and a significant investment of time and resources—the organization must adapt to the demands of operating as a public company while staying true to the values that got us here.
How did being CFO of a public company change your priorities and responsibilities?
Becoming a public company has completely rewritten my job description as CFO. Participating in quarterly earnings calls, investor conferences and regular conversations with analysts and shareholders are now key responsibilities. They require a sharper focus on communicating Guardian’s story, performance and long-term vision to external stakeholders.
I’m fortunate to have an extraordinary team managing critical aspects of finance and operations. Their expertise has allowed me to dedicate more time to these new priorities. It’s been a fun challenge that continues to teach me different ways to lead and communicate as a public company CFO.
With technology and data playing a more prominent role in business decisions, how do you see the role of the CFO evolving in the coming years?
For CFOs, the shift means adopting data-driven tools to make more informed decisions. At Guardian, we use data analytics across the business for everything optimizing labor management to streamlining delivery expenses. Leveraging artificial intelligence, we’ve also improved how we forecast, manage operations and drive efficiency.
Advances in artificial intelligence help us ensure compliance and reduce human error, which allows us to submit clean claims to pharmacy benefit manager processors—an operational improvement with real impact.
I expect technology to play a big part in shaping strategies and driving value for businesses and their communities. Over the next three to five years, embracing these tools will become table stakes for CFOs.
What emerging trends should healthcare CFOs be prepared to address?
Healthcare CFOs have an opportunity to play a leading role in improving the quality of care while reducing costs—two areas that can drive meaningful impact in the U.S. healthcare system. At Guardian, we’re focused on enhancing residents’ lives while bending the healthcare cost curve to expand our market share.
Integrating clinical expertise with business acumen is also a key trend. We’ve built a team that excels in clinical operations and the complexities of a low-margin business. These medical professionals are clinically adept at running pharmacies and understanding the financial levers that drive profitability. The combination allows us to grow the business while maintaining the highest standards of care.
