Agilon Health Q3 revenue beats estimates, raises FY guidance
Overview
U.S. value-based care platform's Q3 revenue rose 6%, beating analyst expectations
Net income turned positive in Q3, beating analyst estimates
Adjusted EBITDA for Q3 rose, driven by improved pricing and payor contracting
Outlook
Company raises 2026 revenue guidance to $5.87 bln-$5.89 bln from $5.78 bln-$5.86 bln
Company lifts 2026 adjusted EBITDA outlook to $145 mln-$155 mln from $75 mln-$95 mln
Company expects 2026 medical services expense ratio of 90.5%-90.3%, improved from 91.9%-91.4% prior
Result Drivers
MEMBERSHIP DECLINE - Co said total members on platform fell 8% YoY due to disciplined contracting, market exits and measured growth approach
REVENUE DRIVERS - Revenue rose due to higher-than-expected burden of illness performance, payor contracting, and improved pricing, partly offset by lower membership
LOWER MEDICAL COSTS - Medical services expense ratio improved to 88.5% from 104.0%, reflecting favorable claims development
Company press release:
Key Details
Metric | Beat/Miss | Actual | Consensus Estimate |
Q3 Revenue | Beat | $1.52 bln | $1.46 bln (14 Analysts) |
Q3 Net Income | Beat | $35 mln | -$21.005 mln (9 Analysts) |
Q3 Adjusted EBITDA | Beat | $64 mln | $506,690 (13 Analysts) |
Analyst Coverage
The current average analyst rating on the shares is "hold" and the breakdown of recommendations is 5 "strong buy" or "buy", 9 "hold" and 1 "sell" or "strong sell"
The average consensus recommendation for the healthcare facilities & services peer group is "buy."
Wall Street's median 12-month price target for agilon health, inc. is $115.00, about 31% above its November 3 closing price of $87.79
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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)