Walgreens Boots Alliance (WBA, Financials) reported better-than-expected fiscal second-quarter earnings on Tuesday and withdrew its full-year outlook as the company moves ahead with plans to go private in a $10 billion transaction.

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Adjusted earnings came in at $0.63 per share for the three-month period ended Feb. 28, exceeding analyst expectations of $0.53, according to estimates compiled by LSEG. Revenue reached $38.59 billion, slightly ahead of the projected $38 billion and up 4.1% from the same quarter last year.

The company posted a net loss of $2.85 billion, or $3.30 per share, compared with a loss of $5.91 billion, or $6.85 per share, a year earlier. The results included a $4.2 billion non-cash impairment charge related to the reduced valuation of its U.S. retail pharmacy business and its investment in VillageMD.

Walgreens is in the process of being acquired by Sycamore Partners in a deal expected to close in the fourth quarter of 2025. In light of the transaction, the company has withdrawn its fiscal 2025 earnings guidance, which had previously projected adjusted earnings between $1.40 and $1.80 per share.

The company continues to implement cost-cutting measures, including store closures, to address a challenging business environment. Walgreens is navigating reduced pharmacy reimbursement rates and softer retail demand while attempting to reshape its healthcare strategy.

During the quarter, Walgreens recorded a $1 billion gain from the sale of a portion of its stake in Cencora and from returns on its investment in BrightSpring, both part of its healthcare portfolio.

Cash flow was negatively impacted by $969 million in legal payments tied to opioid-related settlements and a dispute with Everly Health Solutions over a business contract from the COVID-19 pandemic period.

Chief Executive Officer Tim Wentworth said the quarter reflected early progress in cost discipline and improvement in U.S. healthcare operations. He added that the company is still in the early stages of its turnaround and will require time, focus, and continued investment.