2Q Earnings Presentation August 2025 Copyright © 2025 agilon health. Confidential internal document containing proprietary information. Do not distribute. Disclaimers and Forward-Looking Statements FORWARD-LOOKING STATEMENTS AND OTHER INFORMATION Statements in this presentation that are not historical factual statements are "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended. Forward-look ...

PART I. FINANCIAL INFORMATION [Item 1. Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) Presents agilon health's unaudited condensed consolidated financial statements and notes for periods ended June 30, 2025, and December 31, 2024 [Condensed Consolidated Balance Sheets](index=4&type=section&id=Condensed%20Consolidated%20Balance%20Sheets) Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Total Assets | $1,712,895 | $1,733,983 | | Total Liabilities | $1,303,966 | $1,263,031 | | Total Stockholders' Equity (Deficit) | $408,929 | $470,952 | | Cash and Cash Equivalents | $171,416 | $188,231 | | Marketable Securities | $155,585 | $211,737 | | Medical Claims and Related Payables | $1,042,257 | $931,664 | - Total assets decreased by **$21.1 million** from December 31, 2024, to June 30, 2025, primarily due to decreases in cash and cash equivalents and marketable securities[10](index=10&type=chunk) - Total liabilities increased by **$40.9 million**, driven by a significant increase in medical claims and related payables[10](index=10&type=chunk) [Condensed Consolidated Statements of Operations](index=6&type=section&id=Condensed%20Consolidated%20Statements%20of%20Operations) Condensed Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Revenues | $1,394,982 | $1,482,758 | $2,927,764 | $3,087,112 | | Total Expenses | $1,511,009 | $1,526,102 | $3,065,901 | $3,137,634 | | Income (Loss) from Operations | $(116,027) | $(43,344) | $(138,137) | $(50,522) | | Net Income (Loss) | $(104,370) | $(30,662) | $(92,258) | $(36,696) | | Net Income (Loss) per Common Share, Basic and Diluted (Continuing Operations) | $(0.25) | $(0.07) | $(0.25) | $(0.07) | | Net Income (Loss) per Common Share, Basic and Diluted (Discontinued Operations) | $0.00 | $0.00 | $0.03 | $(0.02) | - Total revenues decreased by **6%** for the three months ended June 30, 2025, and by **5%** for the six months ended June 30, 2025, compared to the respective prior periods[13](index=13&type=chunk) - Net loss significantly widened to **$(104.4) million** for the three months ended June 30, 2025, from **$(30.7) million** in the prior year, and to **$(92.3) million** for the six months ended June 30, 2025, from **$(36.7) million** in the prior year[13](index=13&type=chunk) [Condensed Consolidated Statements of Comprehensive Income (Loss)](index=7&type=section&id=Condensed%20Consolidated%20Statements%20of%20Comprehensive%20Income%20(Loss)) Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income (Loss) | $(104,370) | $(30,662) | $(92,258) | $(36,696) | | Net Unrealized Gain (Loss) on Marketable Securities, net of tax | $210 | $325 | $822 | $(132) | | Foreign Currency Translation Adjustment | $34 | $(25) | $53 | $(17) | | Total Comprehensive Income (Loss) | $(104,126) | $(30,362) | $(91,383) | $(36,845) | - Total comprehensive loss increased significantly, mirroring the trend in net loss, but was partially offset by net unrealized gains on marketable securities in 2025[14](index=14&type=chunk) [Condensed Consolidated Statements of Stockholders' Equity (Deficit)](index=8&type=section&id=Condensed%20Consolidated%20Statements%20of%20Stockholders'%20Equity%20(Deficit)) Condensed Consolidated Statements of Stockholders' Equity (Deficit) (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total Stockholders' Equity (Deficit) | $408,929 | $470,952 | | Accumulated Deficit | $(1,679,235) | $(1,586,977) | | Additional Paid-In Capital | $2,083,234 | $2,053,895 | | Common Stock Shares Outstanding | 414,283 | 412,194 | - Stockholders' equity decreased by **$62.0 million** from December 31, 2024, to June 30, 2025, primarily due to the net loss incurred during the period[10](index=10&type=chunk)[17](index=17&type=chunk) - The accumulated deficit increased by **$92.3 million** for the six months ended June 30, 2025, reflecting the net loss[17](index=17&type=chunk) - Stock-based compensation expense contributed **$32.1 million** to additional paid-in capital for the six months ended June 30, 2025[17](index=17&type=chunk) [Condensed Consolidated Statements of Cash Flows](index=10&type=section&id=Condensed%20Consolidated%20Statements%20of%20Cash%20Flows) Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net Cash Provided by (Used in) Operating Activities | $(67,072) | $(66,493) | | Net Cash Provided by (Used in) Investing Activities | $47,369 | $69,655 | | Net Cash Provided by (Used in) Financing Activities | $(2,741) | $(1,155) | | Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | $(22,444) | $2,007 | | Cash, Cash Equivalents and Restricted Cash, End of Period | $171,416 | $116,336 | - Net cash used in operating activities remained relatively flat year-over-year, at **$(67.1) million** for the six months ended June 30, 2025[19](index=19&type=chunk) - Net cash provided by investing activities decreased by **$22.3 million**, primarily due to changes in marketable securities investments[19](index=19&type=chunk) - The company experienced a net decrease in cash, cash equivalents, and restricted cash of **$(22.4) million** for the six months ended June 30, 2025, compared to a net increase of **$2.0 million** in the prior year[19](index=19&type=chunk) [Notes to the Condensed Consolidated Financial Statements](index=11&type=section&id=Notes%20to%20the%20Condensed%20Consolidated%20Financial%20Statements) [NOTE 1. Business](index=11&type=section&id=NOTE%201.%20Business) - agilon health provides capabilities, capital, and a business model for physician groups to create a Medicare-centric, globally capitated line of business[21](index=21&type=chunk) - As of June 30, 2025, the Company provided care to approximately **497,500 Medicare Advantage members**[21](index=21&type=chunk) - The Company also participates in CMS ACO REACH and MSSP Models through equity method investments[21](index=21&type=chunk) [NOTE 2. Summary of Significant Accounting Policies](index=11&type=section&id=NOTE%202.%20Summary%20of%20Significant%20Accounting%20Policies) - Financial statements are prepared in accordance with U.S. GAAP, consolidating wholly-owned subsidiaries, joint ventures, and controlled VIEs[23](index=23&type=chunk) - Management's estimates for revenue recognition, medical services expense (including IBNR claims), and long-lived asset valuations are significant and may differ materially from actual results[24](index=24&type=chunk) - The Company operates as a single operating and reportable segment, focusing on its Medicare-centric, capitated line of business[30](index=30&type=chunk) - The 'One Big Beautiful Bill Act' signed on July 4, 2025, is being evaluated for its potential

Financial Data and Key Metrics Changes - The company ended 2024 with approximately $440 million in cash, outperforming cash flow projections, and expects to burn about $110 million in 2025 [49] - The company aims to achieve cash flow breakeven by 2027, with several levers to pull, including contracting and cost control [50][52] Business Line Data and Key Metrics Changes - The company operates in two programs: Medicare Advantage (MA) and ACO REACH, with ACO REACH showing about $150 million in savings and a 13% gross savings rate [8] - Quality scores in the Medicare Advantage program are above 4 stars, with year two plus markets running at 4.25 or better, which is a key differentiator [6][7] Market Data and Key Metrics Changes - The company has seen a consistent cost trend of approximately 7% in 2023 and 2024, with a projected 5.3% for 2025 [30][31] - Utilization trends have remained consistent, with inpatient spend being a significant driver, particularly in oncology drugs [55] Company Strategy and Development Direction - The company is focused on transitioning from fee-for-service to value-based care, emphasizing the importance of the primary care physician-patient relationship [4][10] - The company is being measured in its growth strategy, with a reduction in new member classes for 2025 to 20,000, while planning for 30,000 to 45,000 in 2026 [15][70] Management's Comments on Operating Environment and Future Outlook - Management acknowledges a challenging macro environment but notes strong demand from physician groups and payers for the move to value-based care [14][19] - The company is focused on improving performance and reducing volatility, having exited two partnerships last year [41][46] Other Important Information - The company has reduced its Part D exposure from 70% to 30% of its membership for 2025, aiming to further decrease this by 2026 [44] - The company is implementing a new financial data pipeline to enhance revenue and claims information accuracy [34] Q&A Session Summary Question: What are the implications of the current risk adjustment process? - The company emphasizes the importance of the PCP-patient relationship and has a robust risk adjustment process in place, including a 100% chart review process [22][24] Question: How is the company managing utilization trends? - Utilization trends are consistent with expectations, with inpatient spend being a significant driver, particularly in oncology [55] Question: What is the company's strategy for physician partnerships? - The company maintains high net promoter scores from physicians, indicating strong engagement and satisfaction with the value-based care model [59][63]

Summary of Agilon Health (AGL) 2025 Conference Call Company Overview - Agilon Health focuses on transforming primary care by partnering with primary care physicians (PCPs) to manage total cost care and quality for senior populations, moving from fee-for-service to global risk models [2][3] Key Differentiators - Long-term exclusive partnerships with PCPs who have established relationships with their patients, averaging over ten years [2][3] - Transitioning patients and health plans into global risk models to enhance care management [3] Financial Performance and Cost Trends - For Q1, Agilon reported a 5.5% cost trend in year two plus markets, with adjustments indicating a normalized trend closer to 7% [6][7] - The company aims to focus on profitability while intentionally slowing growth, with a smaller member class in 2025 compared to previous years [10][11] Risk Management Strategies - Reduced Part D exposure from approximately 70% to below 30% of membership to mitigate financial risks associated with uncontrollable factors [17][19] - Implemented a no downside care management fee for first-year members to cover costs while transitioning to full risk [11][50] Quality Incentives and Programs - Agilon has seen a significant increase in quality incentives, with $25 million allocated for 2025, focusing on achieving higher star ratings [28][30] - The company is rolling out programs for chronic conditions such as palliative care, heart failure, and COPD, aiming to improve patient outcomes and reduce hospitalizations [33][37] Data and Forecasting Improvements - A new financial data pipeline was launched to enhance visibility into claims and improve forecasting accuracy, with 85% of membership now integrated [42][45] - The company is working to reduce variability in financial performance through better data management [46] ACO REACH Program - ACO REACH has been successful, generating $150 million in gross savings and is expected to expand due to positive outcomes [58][61] - The program is recognized as a model for future Medicare initiatives focusing on evidence-based prevention and alternative payment models [60][61] Long-term Vision - Agilon aims to strengthen its long-term relationships with PCPs, invest in clinical areas, and maintain disciplined growth strategies to adapt to macroeconomic changes [63] Additional Insights - The company is focused on reducing volatility in its operations and enhancing the quality of care provided to patients [21][22] - Agilon's approach emphasizes stability over potential margin expansion, particularly in managing uncontrollable costs [22][23]

Core Insights - Agilon Health (AGL) reported break-even quarterly earnings per share, surprising the market as the Zacks Consensus Estimate anticipated a loss of $0.01, marking a 100% earnings surprise [1] - The company posted revenues of $1.53 billion for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 1.73%, although this represents a decline from year-ago revenues of $1.6 billion [2] - Agilon shares have increased by approximately 116.8% since the beginning of the year, contrasting with a -3.9% decline in the S&P 500 [3] Earnings Outlook - The future performance of Agilon's stock will largely depend on management's commentary during the earnings call and the company's earnings outlook [4] - Current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $1.47 billion, and for the current fiscal year, it is -$0.31 on revenues of $5.92 billion [7] Industry Context - The Medical Services industry, to which Agilon belongs, is currently ranked in the top 25% of over 250 Zacks industries, indicating a favorable outlook compared to the bottom 50% [8] - The correlation between near-term stock movements and earnings estimate revisions suggests that tracking these revisions can provide insights into stock performance [5][6]

Q1 2025 Financial Performance - Medicare Advantage Members reached 491,000[11] - ACO Model Members reached 114,000[11] - Total Members Live on Platform reached 605,000[11] - Total Revenues were $1,533 million[11] - Medical Margin was $128 million[11] - Net Income was $12 million[11] - Adjusted EBITDA was $21 million[11] - Geography Entry Costs were $5 million[11] 2025 Financial Outlook - The company anticipates 2025 cash burn of approximately $110 million[14] - New geography entry cost is expected to be $35-$40 million[10] - Geography Entry Costs are projected to be between $35 million and $40 million[12]

Financial Data and Key Metrics Changes - The company reported total revenue of $1.53 billion for Q1 2025, down from $1.6 billion in Q1 2024, primarily due to market and partnership exits, partially offset by premium growth [21][22] - Medical margin for Q1 2025 was $128 million, compared to $157 million in Q1 2024, reflecting elevated medical costs driven by increased utilization and flu-related expenses [21][22] - Adjusted EBITDA for Q1 2025 was $21 million, down from $29 million in Q1 2024, impacted by ongoing elevated cost trends [23] Business Line Data and Key Metrics Changes - Medicare Advantage membership at the end of Q1 2025 was 491,000, a decrease from 523,000 in Q1 2024, due to a cautious approach to membership growth and partner exits [19][20] - ACO REACH membership for Q1 2025 was 114,000, down from 131,000 in Q1 2024, primarily due to exiting an underperforming partnership [20] Market Data and Key Metrics Changes - The Medicare Advantage market continues to expand, with CMS data showing a year-over-year growth trend of 3.9% [10] - Overall market trends in 2025 remain consistent with the prior year, with a full-year trend expected at 5.3% [9] Company Strategy and Development Direction - The company is focused on disciplined growth, reducing exposure to costs outside of its control, and enhancing clinical and operational capabilities [7][11] - Investments in technology are seen as a key competitive advantage, aimed at improving automation, efficiency, and clinical outcomes [13][14] - The company aims to reduce Part D exposure and improve economic terms for Part C, with a focus on quality incentives [12][45] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the 2026 environment, citing a favorable final rate notice from CMS and supportive comments from administration officials regarding value-based care [8][17] - The company anticipates clearer signals from Congress regarding Medicare policy as the year progresses [8] - Management remains cautious about ongoing utilization pressures and is taking a conservative approach to assumptions for 2025 [25][66] Other Important Information - The company ended Q1 2025 with $369 million in cash and marketable securities, expecting to use approximately $110 million of cash in 2025 [28] - The company is targeting cash flow breakeven by 2027 while maintaining a disciplined approach to capital allocation [28] Q&A Session Summary Question: Impact of V-28 risk model transition on value-based care companies - Management indicated that the risk adjustment perspective for 2025 is in line with expectations, with a 2% net increase year-over-year, inclusive of a 3% headwind from V-28 [33][34] Question: Contribution from previously exited areas - Management noted that unfavorable development from exited markets would not impact 2025 significantly, with minimal remaining IBNR for those service dates [38][39] Question: Clarity on 2026 MA final rate notice - Management confirmed that 40% of membership was repriced for January 2025, with expected benefits from the average 9% increase across the network [42][43] Question: Expectations for 2026 MA bit cycle - Management expressed optimism about the 2026 environment, with a focus on quality incentives and clinical cost-saving initiatives [60][61] Question: Visibility on completed claims and medical cost trends - Management highlighted improved visibility through a new financial data pipeline, which provides detailed member-level revenue and claims data [67][70] Question: Potential membership reduction into 2026 - Management stated that they do not anticipate a reduction in membership due to ongoing efforts to reduce Part D exposure and improve economic terms [76][77] Question: Impact of Humana's star ratings decline - Management acknowledged the potential headwind from Humana's star ratings but emphasized the company's strong quality performance as a differentiator [96][100] Question: Development of clinical programs - Management confirmed that while 2025 is an investment year for new clinical programs, benefits are expected to materialize in 2026 and beyond [107]

Financial Data and Key Metrics Changes - For Q1 2025, total revenue was $1.53 billion, down from $1.6 billion in Q1 2024, primarily due to market and partnership exits, partially offset by premium growth [21] - Membership at the end of Q1 2025 was 491,000, a decrease from 523,000 in Q1 2024, reflecting a cautious approach to growth and partner exits [19] - Medical margin for Q1 2025 was $128 million, down from $157 million in Q1 2024, driven by elevated utilization and costs [21][22] - Adjusted EBITDA for Q1 2025 was $21 million, compared to $29 million in Q1 2024, reflecting ongoing elevated cost trends [23] Business Line Data and Key Metrics Changes - ACO REACH membership decreased to 114,000 in Q1 2025 from 131,000 in Q1 2024, primarily due to exiting an underperforming partnership [20] - Medical costs for Q1 2025 were in line with expectations, driven by elevated utilization and flu-related costs [22] - The medical cost trend for year two plus markets was 5.5% in Q1 2025, down from 6.7% in Q1 2024 [24] Market Data and Key Metrics Changes - The Medicare Advantage market continues to expand, with CMS data showing a year-over-year growth trend of 3.9% [10] - Overall market trends in 2025 remain consistent with the prior year, with an expected full-year trend of 5.3% [9] Company Strategy and Development Direction - The company is focused on disciplined growth, reducing exposure to costs outside of its control, and enhancing clinical and operational capabilities [6][12] - Investments in technology and clinical programs are expected to drive competitive advantages and improve quality outcomes [13][14] - The company anticipates a more favorable environment in 2026, supported by improved payer bids and final rate notices from CMS [11][18] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the final rate notice from CMS for 2026, which is expected to address high cost and utilization trends [6][18] - The company is taking a cautious approach to membership growth, with expectations for retroactive membership assignments in Q2 [5][19] - Management highlighted the importance of early identification and management of chronic diseases as a key focus of their model [7][10] Other Important Information - The company ended Q1 2025 with $369 million in cash and marketable securities, expecting to use approximately $110 million of cash in 2025 [27] - The company is maintaining a disciplined approach to capital allocation to support business objectives while aiming for cash flow breakeven in 2027 [27] Q&A Session Summary Question: Impact of V-28 risk model transition on value-based care companies - Management indicated that the risk adjustment perspective for 2025 is in line with expectations, with a 2% net increase year over year, despite a 3% headwind from V-28 [33][34] Question: Contribution from previously exited areas - Management noted that unfavorable development from exited markets would not impact 2025 significantly, with minimal remaining IBNR [37][38] Question: 2026 MA final rate notice and its flow-through - Management confirmed that 40% of membership was repriced for January 2025, with expected benefits from the average 9% increase across the network [41][42] Question: Risk scores and patient movement - Management clarified that the 2% increase in risk adjustment is on a same member basis, with some movement between payers noted but not significantly affecting care models [49][52] Question: Expectations for 2026 MA bit cycle - Management expressed optimism about the 2026 environment, with a focus on quality incentives and clinical cost-saving initiatives tracking well [58][61] Question: Medical cost trends and visibility on completed claims - Management stated that medical cost trends were in line with expectations, with improved visibility from the new financial data pipeline [65][66] Question: Potential membership reduction due to Part D - Management indicated that they are making progress in reducing Part D exposure and do not anticipate a reduction in membership for 2026 [75][76] Question: Clinical programs and their impact - Management confirmed that while 2025 is an investment year for new clinical programs, benefits are expected to materialize in 2026 and beyond [104][106]

Financial Performance - Total revenue for the first quarter of 2025 was $1.5 billion, a decrease of 4% from $1.6 billion in the first quarter of 2024[90]. - Gross profit fell to $51 million in the first quarter of 2025, down 32% from $75 million in the first quarter of 2024[90]. - Medical margin decreased by 19% to $128 million compared to $157 million in the first quarter of 2024[90]. - Net income for the first quarter of 2025 was $12 million, a significant improvement from a net loss of $6 million in the first quarter of 2024, representing a 301% increase[90]. - Adjusted EBITDA for the first quarter of 2025 was $21 million, down 29% from $29 million in the first quarter of 2024[90]. - Medical services revenue for Q1 2025 was $1,529,879, a decrease of $71,316 or 4% from $1,601,195 in Q1 2024, primarily due to a 6% decline in average membership[115]. - Medical services expense decreased to $1,401,867 in Q1 2025, down $41,975 or 3% from $1,443,842 in Q1 2024, reflecting the same decline in average membership[118]. - Other medical expenses decreased by $5,231 or 6% to $80,193 in Q1 2025 compared to $85,424 in Q1 2024, with partner physician incentive expense dropping to $44.0 million from $49.8 million[119]. - General and administrative expenses fell by $10,466 or 14% to $65,956 in Q1 2025 from $76,422 in Q1 2024, with costs related to geography entry decreasing significantly[120]. - Adjusted EBITDA for Q1 2025 was $20.6 million, compared to $29.1 million in Q1 2024, reflecting a decrease of 29%[132]. - Gross profit for Q1 2025 was $50.7 million, down from $75.1 million in Q1 2024, representing a decline of 32.5%[130]. - Medical margin for Q1 2025 was $128.0 million, compared to $157.4 million in Q1 2024, indicating a decrease of 18.6%[130]. Membership and Services - Medicare Advantage members decreased by 6% to approximately 490,700 as of March 31, 2025, compared to 522,800 in the same period of 2024[90]. - Medical services expense as a percentage of total revenues increased to 91% in Q1 2025 from 90% in Q1 2024[116]. - General and administrative expenses represented 4% of total revenues in Q1 2025, down from 5% in Q1 2024[116]. Cash Flow and Investments - Net cash used in operating activities was $32.0 million for Q1 2025, an improvement from $47.8 million in Q1 2024, showing a reduction of $15.8 million[143]. - Cash and cash equivalents as of March 31, 2025, totaled $138.6 million, with investments in marketable securities amounting to $230.1 million[134]. - The company expects to continue incurring operating losses and generating negative cash flows due to ongoing investments in business expansion[135]. - Net cash used in investing activities was $23.1 million for Q1 2025, compared to net cash provided of $51.4 million in Q1 2024, a change of $74.5 million[144]. - As of March 31, 2025, the company held cash, cash equivalents, restricted cash and equivalents, and marketable securities totaling $368.8 million, compared to $405.6 million as of December 31, 2024[155]. Strategic Focus - The company aims to empower primary care physicians through a risk-bearing entity model to manage total healthcare needs[84]. - The company is focused on expanding its network of physician partners and enhancing its platform capabilities to drive growth[85]. - The company anticipates challenges in maintaining and securing contracts with Medicare Advantage payors on favorable terms[81]. - The company expects medical margin to increase in absolute dollars as the platform matures, despite potential fluctuations in PMPM due to new member additions[125]. Other Financial Metrics - Income from equity method investments increased by $6,988 or 123% to $12,672 in Q1 2025, driven by higher medical margins from CMS ACO Models investments[121]. - Other income (expense), net rose by $3,369 or 57% to $9,261 in Q1 2025, primarily due to $4.2 million of income related to services rendered to CMS ACO Models[122]. - Total discontinued operations reported a gain of $14,000 in Q1 2025, a significant improvement of $23,281 or 251% compared to a loss of $9,281 in Q1 2024[123]. - The Credit Facility includes a $100.0 million senior secured term loan and a $100.0 million senior secured revolving credit facility, maturing on February 18, 2026[146]. - A hypothetical 100 basis point change in interest rates would not have a material impact on the company's interest expense[154]. - A hypothetical 100 basis point change in interest rates would not have a material impact on the fair value of the company's marketable securities[155].

Financial Performance - Total revenues for Q1 2025 were $1.53 billion, a decrease of 4% compared to $1.60 billion in Q1 2024[5] - Gross profit for Q1 2025 was $51 million, a 32% decrease from $75 million in Q1 2024[6] - Net income for Q1 2025 was $12 million, compared to a net loss of $6 million in Q1 2024[6] - Adjusted EBITDA for Q1 2025 was $21 million, a decrease of 29% from $29 million in Q1 2024[6] - Total revenues for Q1 2025 were $1,532,782, a decrease of 4.5% from $1,604,354 in Q1 2024[20] - Medical services revenue was $1,529,879, down from $1,601,195, reflecting a decline of 4.4% year-over-year[20] - Gross profit for Q1 2025 was $50,722, a decrease of 32.5% compared to $75,088 in Q1 2024[24] - Net income for Q1 2025 was $12,112, compared to a net loss of $6,034 in Q1 2024[20] - Adjusted EBITDA for Q1 2025 was $20,567, down from $29,054 in Q1 2024, representing a decline of 29.2%[30] Membership and Membership Trends - Medicare Advantage membership stood at 491,000, down 6% from 523,000 in the previous year[6] - Total members on the agilon platform decreased to 605,000, reflecting a 7% decline year-over-year[6] Guidance and Projections - The company reaffirmed its full-year 2025 earnings guidance, projecting total revenues between $5.85 billion and $6.025 billion[9] - For Q2 2025, total revenue guidance is set between $1.435 billion and $1.505 billion[9] Balance Sheet and Assets - The balance sheet as of March 31, 2025, included cash and marketable securities of $369 million and total debt of $35 million[8] - Total current assets increased to $1,650,722 in Q1 2025 from $1,457,774 in Q4 2024, marking an increase of 13.3%[18] - Total liabilities rose to $1,432,607 in Q1 2025 from $1,263,031 in Q4 2024, an increase of 13.4%[18] - Cash and cash equivalents at the end of Q1 2025 were $138,623, down from $188,231 at the end of Q4 2024, a decrease of 26.4%[18] Medical Margin and Expenses - Medical margin was $128 million, down 19% from $157 million in the same quarter last year[6] - Medical margin for Q1 2025 was $128,012, down from $157,353 in Q1 2024, a decline of 18.6%[29] - General and administrative expenses decreased to $65,956 in Q1 2025 from $76,422 in Q1 2024, a reduction of 13.6%[25] Definitions and Comparisons - Adjusted EBITDA is defined as net income adjusted to exclude various items, including interest expense and stock-based compensation[37] - Medical Margin is the most directly comparable GAAP measure to Gross Profit, while Adjusted EBITDA relates to Net Income[38] - Medical Margin and Adjusted EBITDA are used to identify underlying trends and evaluate operating performance over multiple periods[39]