Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Agilon Health, Inc. due to allegations of materially misleading business information issued by the company [1]. Group 1: Investigation Details - The investigation is prompted by claims that Agilon Health may have provided misleading information to investors [1]. - Shareholders who purchased Agilon Health securities may be entitled to compensation through a class action without any out-of-pocket fees [2]. Group 2: Company Performance - On August 4, 2025, Agilon Health reported its second-quarter results, indicating that industry headwinds were more severe than previously anticipated [3]. - Following the announcement, Agilon Health's stock experienced a significant decline of 51.5% on August 5, 2025 [3]. Group 3: Legal Representation - Rosen Law Firm emphasizes the importance of selecting qualified legal counsel with a proven track record in securities class actions [4]. - The firm has a history of successful settlements, including the largest securities class action settlement against a Chinese company, and has recovered hundreds of millions for investors [4].

Core Viewpoint - Rosen Law Firm is investigating potential securities claims on behalf of shareholders of Agilon Health, Inc. due to allegations of materially misleading business information issued by the company [1]. Group 1: Investigation Details - The investigation is prompted by claims that Agilon Health may have misled investors regarding its business performance [1]. - Shareholders who purchased Agilon Health securities may be entitled to compensation through a contingency fee arrangement, with no out-of-pocket costs [2]. Group 2: Company Performance - On August 4, 2025, Agilon Health reported its second-quarter results, indicating that industry headwinds were more severe than previously anticipated [3]. - Following the announcement, Agilon Health's stock experienced a significant decline of 51.5% on August 5, 2025, and the company suspended its full-year 2025 financial guidance [3]. Group 3: Rosen Law Firm's Credentials - Rosen Law Firm has a strong track record in securities class actions, having achieved the largest securities class action settlement against a Chinese company and consistently ranking among the top firms for securities class action settlements since 2013 [4]. - The firm has recovered hundreds of millions of dollars for investors, securing over $438 million in 2019 alone [4].

Core Points - Agilon Health's shares fell 6.8% after receiving a non-compliance notice from the New York Stock Exchange due to its stock price dropping below listing standards [1][2] - The notice was triggered by the stock's average closing price remaining below $1.00 for a continuous 30-day period, following a larger-than-expected loss reported in the third quarter [2] - To avoid delisting, Agilon Health plans to seek a reverse stock split, pending stockholder approval, and has a six-month period to regain compliance [2] - A Barclays analyst also lowered the price target on Agilon Health's stock, contributing to negative sentiment [2] Financial Performance - In the third quarter, Agilon Health reported revenue of $1.44 billion, a 1.1% year-over-year decline, but narrowly exceeded analyst estimates [5] - The company posted a GAAP loss of $0.27 per share, missing the consensus estimate of a $0.17 loss, indicating significant profitability issues [5] - Full-year revenue guidance was in line with expectations, but the outlook for adjusted EBITDA was well below analyst projections [5] Stock Performance - Agilon Health's shares have experienced extreme volatility, with 77 moves greater than 5% over the last year, indicating the market views recent news as significant but not fundamentally altering its perception of the business [4] - The stock is down 65.1% year-to-date and is trading at $0.67 per share, which is 88.2% below its 52-week high of $5.68 from April 2025 [6] - An investment of $1,000 in Agilon Health's shares at the IPO in April 2021 would now be worth $21.60 [6]

Core Viewpoint - The law firm Shamis & Gentile, P.A. is investigating potential breaches of fiduciary duties by directors and officers of agilon health, inc. following a significant drop in the company's stock price due to lowered profit forecasts and increased medical costs [1][2]. Group 1: Investigation Details - The investigation is prompted by agilon health's unexpected announcement on January 5, 2024, which included a reduction in its 2023 profit forecasts, specifically lowering its Medical Margin and Adjusted EBITDA guidance due to higher than anticipated medical costs [2]. - Following the announcement, agilon's stock price fell by $3.45, or 28.6%, closing at $8.63 on the same day [2]. - A securities class action lawsuit has been filed against agilon and certain executives, alleging that they misled investors regarding medical costs and provided overly optimistic financial guidance [3]. Group 2: Governance and Oversight - Shamis & Gentile, P.A. is assessing whether agilon's board of directors and senior executives failed to maintain adequate oversight and internal controls related to the alleged misconduct, which may have led to significant legal, financial, and reputational risks for the company [4]. - Long-term shareholders may have the opportunity to seek corporate governance reforms and the return of funds to the company, with no associated costs [5].

Core Viewpoint - The article discusses the importance of enabling Javascript and cookies in browsers to ensure proper functionality and access to content [1] Group 1 - The article highlights that users may face access issues if they have an ad-blocker enabled [1] - It suggests disabling ad-blockers and refreshing the page to proceed [1]

Core Insights - Agilon Health (AGL) reported a quarterly loss of $0.27 per share, which was worse than the Zacks Consensus Estimate of a loss of $0.18, marking an earnings surprise of -50.00% [1] - The company generated revenues of $1.44 billion for the quarter ended September 2025, slightly surpassing the Zacks Consensus Estimate by 0.57%, but down from $1.45 billion a year ago [2] - Agilon shares have declined approximately 57.4% year-to-date, contrasting with the S&P 500's gain of 16.5% [3] Financial Performance - Over the last four quarters, Agilon has exceeded consensus EPS estimates only once [2] - The current consensus EPS estimate for the upcoming quarter is -$0.19 on revenues of $1.47 billion, and for the current fiscal year, it is -$0.56 on revenues of $5.82 billion [7] Market Outlook - The company's Zacks Rank is currently 3 (Hold), indicating expected performance in line with the market in the near future [6] - The Medical Services industry, to which Agilon belongs, is ranked in the bottom 43% of over 250 Zacks industries, suggesting potential challenges ahead [8]

Financial Data and Key Metrics Changes - For Q3 2025, the company reported revenue of $1.44 billion, a slight decrease from $1.45 billion in Q3 2024. The medical margin was negative $57 million, compared to negative $58 million in the same period last year. Adjusted EBITDA was negative $91 million, an improvement from negative $96 million in Q3 2024 [4][17][19] - The company reinitiated its 2025 guidance, expecting revenue between $5.81 billion and $5.83 billion, with a medical margin projected between negative $5 million and negative $15 million, and adjusted EBITDA guidance ranging from negative $270 million to negative $245 million [6][22][23] Business Line Data and Key Metrics Changes - Medicare Advantage membership at the end of Q3 2025 was 503,000, down from 525,000 in Q3 2024. ACO REACH membership decreased to 115,000 from 132,000 in the same period [17] - The company experienced a negative impact of $20 million from exited markets during the quarter [18] Market Data and Key Metrics Changes - The company noted that the 2025 risk adjustment scores were lower than expected, impacting revenue by approximately $150 million for the full year. This was primarily driven by one payer in a new market [18] - The company expects to end 2025 with approximately $310 million in cash, including about $65 million held off-balance sheet by ACO entities [23][28] Company Strategy and Development Direction - The company is focused on executing strategic initiatives aimed at improving contract economics, reducing risk, and optimizing cost structures. It anticipates a $30 million reduction in operating expenses for 2026 [16][24] - The company is taking a disciplined approach to payer contracting, which includes reducing Part D exposure and enhancing quality incentives [9][26] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism for 2026, citing several tailwinds such as a 9% benchmark rate increase and better-aligned payer contracts. They believe these factors will drive material improvement in performance [24][25] - The leadership team is actively engaged in improving performance and is committed to enhancing Agilon's position for sustainable value creation [15][29] Other Important Information - The company is currently in the process of searching for a new CEO, with a focus on candidates who align with the company's new strategic direction [15][36] - The company plans to pursue a reverse stock split and seek stockholder approval at the annual general meeting in 2026 [28] Q&A Session Summary Question: Impact of ACO REACH changes on EBITDA - Management acknowledged that changes to the ACO REACH program would lead to lower economics but still contribute positively to margins. They are reviewing ACOs to determine better models for 2026 [30][31] Question: Potential market exits and payer contracts - Management confirmed a disciplined approach to contracting, indicating that they would not engage with payers if the economics do not make sense. Any reduction in membership would benefit medical margins and EBITDA [32][33] Question: Update on CEO search - The search for a new CEO is ongoing, with good candidates emerging. Management emphasized active engagement in improving business performance during this transition [35][36] Question: Medical cost trends in Q3 - Management noted that inpatient and Part B oncology drug costs remain high, but overall medical cost trends have restated favorably [36] Question: Cash allocation to ACO REACH entities - The company clarified that there is no minimum cash requirement for ACO REACH entities, but maintaining cash there provides tax efficiencies [37] Question: Changes in provider contracts - Management stated that there are no significant changes to provider contracts, but they are aligning incentives with physician partners to achieve operating savings [45][46] Question: Impact of Humana's focus on benefit stability - Management indicated that they analyze benefit designs from all payers, including Humana, as part of their contracting process [52][53]

Q3 2025 Financial Performance - Medicare Advantage Members totaled 503,000[11] - Total Members Live on Platform reached 618,000[11] - Total Revenues amounted to $1,435 million[11] - The company experienced a Gross Loss of $68 million[11] - Adjusted EBITDA resulted in a loss of $91 million[11] 2025 Financial Outlook - Total Revenues are projected to be between $5,810 million and $5,830 million[12] - Medical Margin is expected to range from a loss of $5 million to a profit of $15 million[12] - Adjusted EBITDA is forecasted to be a loss between $270 million and $245 million[12] Key Factors Affecting Performance - A $73 million impact from risk adjustment revenue in Q3, including a 9-month true-up for 28% of membership not in Q2 results[6] - Lower profitability of $20 million in Q3 from exited markets[6] - The company anticipates $30 million in cost reduction impact in 2026 from OPEX cost initiatives[13]

Financial Performance - Total revenue for the nine months ended September 30, 2025, was $4.4 billion, a decrease of 4% from the same period in 2024[95] - Gross profit for the third quarter of 2025 was negative $68 million, compared to negative $64 million in the third quarter of 2024[97] - Net loss for the third quarter of 2025 was $110 million, an improvement from a net loss of $118 million in the third quarter of 2024[97] - Adjusted EBITDA loss for the nine months ended September 30, 2025, was $154 million, compared to a loss of $70 million in the same period of 2024[103] - Medical margin for the nine months ended September 30, 2025, was $18 million, down from $205 million in the same period of 2024[103] - Adjusted EBITDA for the nine months ended September 30, 2025, was $(154.3) million, compared to $(70.2) million for the same period in 2024, reflecting a significant increase in operating losses[148] Membership and Services - Medicare Advantage members totaled approximately 502,800 as of September 30, 2025, reflecting a 4% decrease from September 30, 2024[97] - The average Medicare Advantage membership during the third quarter of 2025 was 510,400[99] - Medical services revenue for the three months ended September 30, 2025 was $1,432,437, a decrease of $15,260 or 1% compared to the same period in 2024[126] - Medical services revenue for the nine months ended September 30, 2025 was $4,354,355, a decrease of $174,116 or 4% compared to the same period in 2024[128] - Medical services expense for the three months ended September 30, 2025 was $1,489,479, a decrease of $16,471 or 1% compared to the same period in 2024[129] - Medical services expense for the nine months ended September 30, 2025, increased by $12.7 million, or 0%, compared to the same period in 2024, primarily due to a 5% increase in average medical services expense per member, offset by a 4% decline in average membership[130] Operational Strategies - The company implemented a payor data pipeline in Q1 2025 to enhance visibility into member risk profiles and risk adjustment factors[100] - The company aims to empower primary care physicians to manage health outcomes and total healthcare needs of their attributed Medicare patients[92] - The business model focuses on forming risk-bearing entities within local geographies to manage total healthcare needs through global capitation arrangements[92] Expenses and Cash Flow - Total expenses for the three months ended September 30, 2025 were $1,566,595, compared to $1,584,440 for the same period in 2024[125] - General and administrative expenses for the three months ended September 30, 2025 were $56,198, compared to $63,123 for the same period in 2024[125] - General and administrative expenses for the nine months ended September 30, 2025, decreased by $30.7 million, or 15%, compared to the same period in 2024[134] - For the nine months ended September 30, 2025, the net cash used in operating activities was $85.2 million, an increase of $11.0 million compared to $74.2 million for the same period in 2024[159] - Net cash provided by investing activities was $66.0 million for the nine months ended September 30, 2025, a decrease of $50.2 million compared to $116.2 million for the same period in 2024[160] - Net cash used in financing activities was $3.0 million for the nine months ended September 30, 2025, compared to $2.6 million for the same period in 2024[161] Equity and Financing - Income from equity method investments for the three months ended September 30, 2025, increased by $11.1 million, or 542%, compared to the same period in 2024[136] - Income from equity method investments for the nine months ended September 30, 2025, increased by $13.5 million, or 77%, compared to the same period in 2024[137] - The company may require additional financing in the future to fund working capital and pay obligations, which could dilute existing stockholders' ownership[156] - The Credit Facility includes a $100.0 million senior secured term loan and a $100.0 million senior secured revolving credit facility, with a maturity date of February 18, 2026[162] Discontinued Operations - Total discontinued operations for the nine months ended September 30, 2025, amounted to $14.0 million, a $24.5 million increase compared to losses from discontinued operations in the same period in 2024[140] Interest Rates - A hypothetical 100 basis point change in interest rates would not have a material impact on the company's interest expense[171]

Financial Performance - Total revenue for Q3 2025 was $1.44 billion, a decrease of 1% compared to $1.45 billion in Q3 2024[3] - The net loss for Q3 2025 was $110 million, an improvement of 6% compared to a net loss of $118 million in Q3 2024[4] - Adjusted EBITDA loss was $91 million in Q3 2025, compared to a loss of $96 million in Q3 2024, indicating a 5% improvement[4] - Total revenues for the three months ended September 30, 2025, were $1,435,321, a decrease of 1.1% from $1,450,932 in the same period of 2024[16] - Total expenses for the three months ended September 30, 2025, were $1,566,595, slightly lower than $1,584,440 in 2024, resulting in an operating loss of $131,274[16] - The net loss attributable to common shares for the nine months ended September 30, 2025, was $202,465, compared to a loss of $154,361 in 2024, indicating a 31.1% increase in losses[16] - Adjusted EBITDA for the three months ended September 30, 2025, was $(91,492), compared to $(96,469) in the same period of 2024, showing a slight improvement[26] - The company reported a gross profit (loss) of $(67,646) for the three months ended September 30, 2025, compared to $(64,167) in 2024, indicating continued pressure on profitability[20] Membership and Operations - Total members on the agilon platform decreased to 618,000, including 503,000 Medicare Advantage members, reflecting a 6% year-over-year decline[4] - The company anticipates a total of 616,000 to 621,000 members on its platform by the end of 2025[8] - The company expects the medical margin to increase in absolute dollars as the platform matures, despite potential fluctuations in medical margin per member per month (PMPM) due to new member dilution[32] Medical Margin and Revenue - The company reported a medical margin of negative $57 million in Q3 2025, slightly improved from negative $58 million in Q3 2024[4] - Medical services revenue for the nine months ended September 30, 2025, was $4,354,355, down from $4,528,471 in 2024, reflecting a decline of 3.8%[16] - Medical margin for the nine months ended September 30, 2025, was $17,764, a significant decrease from $204,619 in 2024, reflecting challenges in cost management[25] - The medical margin for the three months ended September 30, 2025, was $(57,042), while the medical margin for the nine months ended was $17,764[30] Cash and Liquidity - Cash and cash equivalents, along with marketable securities, totaled $311 million as of September 30, 2025[6] - Cash, cash equivalents, and restricted cash at the end of the period were $171,684 for September 30, 2025, compared to $153,790 in 2024, showing an increase in liquidity[18] - Cash flows from operating activities for the nine months ended September 30, 2025, resulted in a net cash used of $85,226, compared to $74,196 in 2024, indicating increased cash outflow[18] Cost Management and Future Guidance - The company expects to reduce operating costs by $30 million in 2026 as part of its transformation initiatives[2] - Fiscal year 2025 guidance projects total revenues between $5.81 billion and $5.83 billion, with a medical margin expected to range from a loss of $5 million to a profit of $15 million[8] Accounting and Financial Metrics - Adjusted EBITDA is defined as net income adjusted for various expenses, providing insight into ongoing operating performance[33] - The company emphasizes that Medical Margin and Adjusted EBITDA are important non-GAAP measures for evaluating financial performance and trends[35] - The gross profit (loss) is the most directly comparable GAAP measure to Medical Margin, while net income (loss) relates to Adjusted EBITDA[34] - The company notes that certain operations are not consolidated due to lack of control over the entities' board of directors, impacting revenue recognition[30] - The company believes that the metrics provided enhance understanding of past performance and future prospects, aiding in financial decision-making[35]