Table of Contents Emerging Growth Company o UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 _______________________________________________________ FORM 10-Q _______________________________________________________ (Mark One) x QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. For the quarterly period ended September 30, 2024 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period fr ...

Exhibit 99.1 agilon health Reports Third Quarter 2024 Results Revenue increased 28% to $1.45 billion, Medicare Advantage membership increased 37% to 525,000, and total members on the agilon platform grew 39% to 657,000 Third quarter results were affected by lower-than-expected 2024 risk adjustment, negative prior year development mainly from risk adjustment and Part D, and higher current year medical expenses Adjusted full year guidance reflects Q3 results and updated Q4 cost trends AUSTIN, T.X., November 7 ...

Core Viewpoint - Agilon Health has experienced significant stock price declines following disappointing financial results, despite showing strong revenue growth and an interesting business model in the healthcare sector [2][3][16]. Financial Performance - In Q2 2024, Agilon Health generated revenue of $1.48 billion, a 38.7% increase from $1.07 billion in the same quarter last year, although it fell short of analysts' expectations by $60 million [4][5]. - The company reported a net loss of $30.7 million, nearly doubling from $16.7 million a year earlier, with a loss per share of $0.07, which was slightly better than analysts' expectations [5][6]. - Operating cash flow improved from negative $21.2 million to negative $18.7 million, and adjusted operating cash flow turned positive at $14.8 million [5][6]. Membership Growth - The number of Medicare Advantage members increased to 512,800 from 372,800 a year ago, but declined from 522,800 in Q1 2024, leading to market disappointment [5][8]. - ACO Model members rose significantly to 131,700 from 87,000 year-over-year, exceeding management's forecast [5][8]. Guidance and Outlook - For FY 2024, management updated guidance for Medicare Advantage members to between 518,000 and 520,000, while revenue expectations were lowered to between $6.01 billion and $6.04 billion [7][8]. - The forecast for adjusted EBITDA remains negative, projected between $15 million and $60 million [8]. Cost Management - Medical margin, defined as medical services revenue after expenses, is expected to improve to $400 million from $298.7 million in 2023, indicating a slight increase in margin percentage [11]. - Platform support costs decreased from $42 million to a lower percentage of sales, indicating better control over operating expenses [13]. Cash Position - The company's net cash position decreased to $371.8 million from $388.6 million in Q1 2024, raising concerns about potential future dilution if cash reserves continue to decline [14][15]. Valuation Considerations - The analysis suggests that while the company shows potential for growth, the current share price may not reflect an attractive investment opportunity given the volatility and uncertainty in its financial performance [16].

NEW YORK, Aug. 08, 2024 (GLOBE NEWSWIRE) -- Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is investigating potential claims against Agilon Health, Inc. (NYSE: AGL) on behalf of long-term stockholders following a class action complaint that was filed against Agilon on March 19, 2024 with Class Period (1) Agilon common stock purchases traceable to the April 2021 initial public offering of Agilon stock; (2) pursuant, or traceable, or both, to materials issued in connection w ...

Magilon health, inc. (NYSE:AGL) Q2 2024 Earnings Conference Call August 6, 2024 4:30 PM ET Company Participants Leland Thomas - VP, IR Steven Sell - CEO Jeffrey Schwaneke - CFO Conference Call Participants Lisa Gill - JPMorgan Justin Lake - Wolfe Research Stephen Baxter - Wells Fargo Ryan Daniels - William Blair Elizabeth Anderson - Evercore ISI Adam Ron - Bank of America. Eduardo Ron - Truist George Hill - Deutsche Bank Michael Ha - Baird Jack Slevin - Jefferies Whit Mayo - Leerink Partners Jenny Shen - BT ...

Agilon Health (AGL) reported $1.48 billion in revenue for the quarter ended June 2024, representing a year-over-year increase of 29%. EPS of -$0.07 for the same period compares to -$0.04 a year ago.The reported revenue compares to the Zacks Consensus Estimate of $1.56 billion, representing a surprise of -4.85%. The company has not delivered EPS surprise, with the consensus EPS estimate being -$0.07.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how th ...

Agilon Health (AGL) came out with a quarterly loss of $0.07 per share in line with the Zacks Consensus Estimate. This compares to loss of $0.04 per share a year ago. These figures are adjusted for non-recurring items.A quarter ago, it was expected that this senior-focused health care company would post a loss of $0.02 per share when it actually produced earnings of $0.01, delivering a surprise of 150%.Over the last four quarters, the company has surpassed consensus EPS estimates just once.Agilon, which belo ...

PART I. FINANCIAL INFORMATION [Financial Statements](index=4&type=section&id=Item%201.%20Financial%20Statements) The unaudited condensed consolidated financial statements for Q2 and YTD 2024 show significant revenue growth from increased membership, alongside widening net losses due to higher medical services expenses Condensed Consolidated Balance Sheet Highlights (in thousands) | Account | June 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | Cash and cash equivalents | $109,490 | $107,570 | | Receivables, net | $1,437,040 | $942,461 | | Total assets | $2,163,315 | $1,740,866 | | Medical claims and related payables | $1,097,664 | $737,724 | | Total liabilities | $1,487,448 | $1,079,845 | | Total stockholders' equity (deficit) | $675,867 | $661,021 | Condensed Consolidated Statements of Operations Highlights (in thousands, except per share data) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Total revenues | $1,482,758 | $1,069,115 | $3,087,112 | $2,123,427 | | Medical services expense | $1,374,060 | $932,823 | $2,817,902 | $1,830,395 | | Income (loss) from operations | ($43,344) | ($28,957) | ($50,522) | ($28,540) | | Net income (loss) | ($30,662) | ($16,795) | ($36,696) | ($836) | | Net income (loss) per share, diluted | ($0.07) | ($0.04) | ($0.07) | ($0.01) | Condensed Consolidated Statements of Cash Flows Highlights (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($66,493) | ($82,015) | | Net cash provided by (used in) investing activities | $69,655 | ($30,782) | | Net cash provided by (used in) financing activities | ($1,155) | ($193,698) | [Note 1: Business](index=11&type=section&id=NOTE%201.%20Business) agilon health empowers physician groups with a Medicare-centric, globally capitated model, serving **512,800** Medicare Advantage members and expanding into new markets and CMS ACO models in 2024 - As of June 30, 2024, the company provided care to approximately **512,800 Medicare Advantage members** through its contracted physician networks[19](index=19&type=chunk) - On January 1, 2024, the company expanded operations into Lexington, Kentucky, and Augusta, Georgia, and added partnerships in existing markets, also beginning participation in the Medicare Shared Savings Program (MSSP)[19](index=19&type=chunk) [Note 3: Revenue, Receivables, and Concentration of Credit Risk](index=13&type=section&id=NOTE%203.%20Revenue%2C%20Receivables%2C%20and%20Concentration%20of%20Credit%20Risk) Revenue from PMPM capitation fees is concentrated among major payors and subject to CMS risk adjustment, with Q2 2024 seeing a **$55.9 million** reduction due to contract terminations Revenue Concentration by Major Payor | Payor | Q2 2024 | Q2 2023 | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | :--- | :--- | | Payor A | 22% | 23% | 22% | 21% | | Payor B | 19% | 15% | 17% | 16% | - During Q2 2024, the termination of certain payor contracts, retroactively effective to January 1, 2024, led to a **$55.9 million reduction** in medical services revenue[36](index=36&type=chunk) [Note 6: Medical Claims and Related Payables](index=17&type=section&id=NOTE%206.%20Medical%20Claims%20and%20Related%20Payables) Medical claims and related payables, including IBNR, are actuarially estimated, with current year incurred costs of approximately **$2.8 billion** and a **$15.1 million** favorable prior-year development for the six months ended June 30, 2024 Changes in Medical Claims and Related Payables (in thousands) | Description | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Beginning Balance | $723,071 | $339,748 | | Incurred costs - Current year | $2,802,803 | $1,790,634 | | Incurred costs - Prior years | $15,099 | $39,761 | | Claims paid - Current year | ($1,806,692) | ($774,743) | | Claims paid - Prior years | ($650,106) | ($304,682) | | Ending Balance | $1,084,175 | $1,086,960 | - In Q2 2024, the termination of certain payor contracts resulted in a **$54.3 million reduction** in medical services expense, retroactive to January 1, 2024[52](index=52&type=chunk) [Note 8: Debt](index=19&type=section&id=NOTE%208.%20Debt) As of June 30, 2024, the company's credit facility had **$36.2 million** outstanding on its term loan at a **9.376%** effective interest rate, with **$51.4 million** available under the revolving facility - As of June 30, 2024, the company had **$36.2 million** outstanding under its Secured Term Loan Facility[58](index=58&type=chunk) - Availability under the **$100.0 million** Secured Revolving Facility was **$51.4 million**, as **$48.6 million** was utilized for outstanding letters of credit[58](index=58&type=chunk) - The effective interest rate on the Secured Term Loan Facility was **9.376%** as of June 30, 2024[59](index=59&type=chunk) [Note 9: Commitments and Contingencies](index=21&type=section&id=NOTE%209.%20Commitments%20and%20Contingencies) Three putative class action lawsuits filed in early 2024 allege securities fraud regarding medical utilization and financial metrics, with the potential financial impact currently inestimable due to early litigation stages - Three putative class action lawsuits were filed against the company and certain executives in February and March 2024, alleging securities fraud under the Securities Act of 1933 and the Securities Exchange Act of 1934[63](index=63&type=chunk) - The lawsuits pertain to statements made between April 2021 and February 2024 regarding medical utilization, claims rates, medical margin, and profit margins, with the company unable to estimate potential liability[63](index=63&type=chunk) [Note 14: Variable Interest Entities](index=24&type=section&id=NOTE%2014.%20Variable%20Interest%20Entities) The company consolidates 34 wholly-owned risk-bearing entities as VIEs, holding **$1.60 billion** in assets and **$1.36 billion** in liabilities as of June 30, 2024, and also invests in 11 unconsolidated CMS ACO Model VIEs - The company consolidates **34 wholly-owned risk-bearing entities (RBEs)** as VIEs, as it is deemed the primary beneficiary[76](index=76&type=chunk)[79](index=79&type=chunk) CMS ACO Models Equity Method Investment Operating Results (in thousands) | Metric | Three Months Ended June 30, 2024 | Three Months Ended June 30, 2023 | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | :--- | :--- | | Medical services revenue | $446,914 | $280,820 | $887,074 | $561,349 | | Medical services expense | ($406,921) | ($241,844) | ($805,713) | ($499,321) | | Net income (loss) | $9,921 | $8,426 | $15,552 | $9,760 | [Note 15: Discontinued Operations](index=27&type=section&id=NOTE%2015.%20Discontinued%20Operations) Hawaii operations, including MDX Hawaii, Inc., are reported as discontinued following their October 2023 disposition, resulting in a **$9.3 million net loss** for the six months ended June 30, 2024, primarily from asset sale losses - The disposition of MDX Hawaii, Inc. and related operations was completed on October 31, 2023, and is reflected as discontinued operations for all periods presented[85](index=85&type=chunk) Results of Discontinued Operations (in thousands) | Metric | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Total revenues | $0 | $161,772 | | Gain (loss) on sales of assets, net | ($8,763) | $0 | | Net income (loss) from discontinued operations | ($9,281) | $5,239 | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=29&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses significant Q2 and YTD 2024 membership and revenue growth, offset by increased medical expenses leading to declines in gross profit, medical margin, and Adjusted EBITDA, and a larger net loss, while affirming sufficient liquidity for the next 12 months [Overview and Recent Developments](index=31&type=section&id=Overview%20and%20Recent%20Developments) The company's Q2 2024 revenue grew **39%** to **$1.5 billion** with **38%** MA member growth, but medical margin decreased to **$106 million**, resulting in a **$31 million** net loss Q2 2024 Financial Highlights vs. Q2 2023 | Metric | Q2 2024 | Q2 2023 | | :--- | :--- | :--- | | Medicare Advantage members | ~512,800 | Not specified in summary | | Total revenue | $1.5 billion | Not specified in summary | | Medical margin | $106 million | $134 million | | Net loss | $31 million | $17 million | | Adjusted EBITDA | ($3 million) | $12 million | YTD 2024 Financial Highlights vs. YTD 2023 | Metric | YTD 2024 | YTD 2023 | | :--- | :--- | :--- | | Total revenue | $3.1 billion | Not specified in summary | | Medical margin | $263 million | $290 million | | Net loss | $37 million | $1 million | | Adjusted EBITDA | $26 million | $37 million | [Key Financial and Operating Metrics](index=32&type=section&id=Key%20Financial%20and%20Operating%20Metrics) For the six months ended June 30, 2024, MA members grew **38%** and medical services revenue increased **45%** to **$3.1 billion**, but gross profit, medical margin, and Adjusted EBITDA declined by **16%**, **9%**, and **28%** respectively Key Metrics Comparison (Six Months Ended June 30) | Metric | 2024 | 2023 | % Change | | :--- | :--- | :--- | :--- | | MA members | 512,800 | 372,800 | 38% | | Medical services revenue (in thousands) | $3,080,774 | $2,120,353 | 45% | | Gross profit (in thousands) | $107,263 | $127,699 | (16)% | | Medical margin (in thousands) | $262,872 | $289,958 | (9)% | | Net loss (in thousands) | ($36,696) | ($836) | (4,289)% | | Adjusted EBITDA (in thousands) | $26,224 | $36,507 | (28)% | [Results of Operations](index=36&type=section&id=Results%20of%20Operations) Total revenues for the first six months of 2024 increased **45%** to **$3.1 billion** due to membership and PMPM rate growth, but medical services expense grew **54%**, leading to decreased gross profit and an increased operating loss - **Medical Services Revenue (YTD):** Increased **45%** to **$3.1 billion**, primarily due to a **39%** growth in average membership and a **4%** increase in PMPM capitation rates[130](index=130&type=chunk) - **Medical Services Expense (YTD):** Increased **54%** to **$2.8 billion**, driven by **39%** membership growth and an **11%** increase in average medical services expense per member[132](index=132&type=chunk) - **Other Medical Expenses (YTD):** Decreased **2%** to **$161.9 million**, as a **$22.3 million** decline in partner physician incentive expense offset an **$18.9 million** increase in other provider costs[134](index=134&type=chunk) - **General and Administrative (YTD):** Decreased **2%** to **$146.0 million**, mainly due to reduced investments to support new geography entry[136](index=136&type=chunk) [Non-GAAP Financial Measures](index=40&type=section&id=Non-GAAP%20Financial%20Measures) The company utilizes non-GAAP measures, Medical Margin and Adjusted EBITDA, for performance evaluation, reporting **$262.9 million** and **$26.2 million** respectively for the six months ended June 30, 2024 Reconciliation of Gross Profit to Medical Margin (in thousands) | Line Item | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Gross profit | $107,263 | $127,699 | | Other operating revenue | ($6,338) | ($3,074) | | Other medical expenses | $161,947 | $165,333 | | **Medical margin** | **$262,872** | **$289,958** | Reconciliation of Net Income (Loss) to Adjusted EBITDA (in thousands) | Line Item | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net income (loss) | ($36,696) | ($836) | | Adjustments | $62,920 | $41,461 | | **Adjusted EBITDA** | **$26,224** | **$36,507** | [Liquidity and Capital Resources](index=42&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2024, the company held **$116.3 million** in cash and **$291.6 million** in marketable securities, with management affirming sufficient liquidity for the next 12 months despite continued operating losses, and net cash used in operations improving to **$66.5 million** - As of June 30, 2024, the company had cash, cash equivalents, and restricted cash of **$116.3 million** and marketable securities of **$291.6 million**[152](index=152&type=chunk) - Management believes existing cash, investments, and available borrowing capacity are sufficient to meet working capital and capital expenditure needs for at least the next 12 months[155](index=155&type=chunk) Summary of Cash Flows (in thousands) | Cash Flow Activity | Six Months Ended June 30, 2024 | Six Months Ended June 30, 2023 | | :--- | :--- | :--- | | Net cash used in operating activities | ($66,493) | ($82,015) | | Net cash provided by (used in) investing activities | $69,655 | ($30,782) | | Net cash used in financing activities | ($1,155) | ($193,698) | [Quantitative and Qualitative Disclosures About Market Risk](index=45&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations affecting floating-rate debt and investment income, with a 100 basis point change not expected to materially impact interest expense or marketable securities fair value - The company's main market risk is interest rate changes affecting its floating-rate debt and investment income[170](index=170&type=chunk) - A hypothetical **100 basis point change** in interest rates would not materially impact interest expense or the fair value of marketable securities[171](index=171&type=chunk)[172](index=172&type=chunk) [Controls and Procedures](index=45&type=section&id=Item%204.%20Controls%20and%20Procedures) As of June 30, 2024, disclosure controls and procedures were deemed ineffective due to an ongoing material weakness in internal control over financial reporting, with no new material changes identified during the quarter - The CEO and CFO concluded that disclosure controls and procedures were not effective as of June 30, 2024, due to a previously disclosed material weakness in internal control over financial reporting[173](index=173&type=chunk) - Efforts to remediate the material weakness are ongoing, and no changes occurred in the quarter that have materially affected, or are reasonably likely to materially affect, the company's internal control over financial reporting[175](index=175&type=chunk) PART II. OTHER INFORMATION [Legal Proceedings](index=46&type=section&id=Item%201.%20Legal%20Proceedings) Legal proceedings information, including ongoing putative class action lawsuits, is incorporated by reference from Note 9 of the Condensed Consolidated Financial Statements - Details on legal proceedings are provided in Note 9 to the Condensed Consolidated Financial Statements[177](index=177&type=chunk) [Risk Factors](index=46&type=section&id=Item%201A.%20Risk%20Factors) No material changes have occurred to the risk factors previously disclosed in the company's Annual Report on Form 10-K for the fiscal year ended December 31, 2023 - No material changes have been made to the risk factors disclosed in the Annual Report on Form 10-K for the year ended December 31, 2023[178](index=178&type=chunk) [Other Information](index=46&type=section&id=Item%205.%20Other%20Information) Effective August 1, 2024, Veeral Desai resigned as Chief Strategy and Development Officer to transition into a strategic advisor role focusing on future growth and payor strategies - Effective August 1, 2024, Veeral Desai resigned as Chief Strategy and Development Officer and transitioned to a strategic advisor role[182](index=182&type=chunk)

Revenue Performance - Revenue increased 39% to $1.48 billion in Q2 2024 compared to $1.07 billion in Q2 2023[3] - Total revenues for the three months ended June 30, 2024, were $1,482,758, a 38.7% increase from $1,069,115 in the same period of 2023[21] - Medical services revenue for the six months ended June 30, 2024, reached $3,080,774, compared to $2,120,353 for the same period in 2023, reflecting a 45.4% growth[21] - Medical services revenue for Q2 2024 was $1,479,579, compared to $3,080,774 for the same period in 2023, indicating a significant decline in revenue[30] - Total revenues for Q2 2024 were $1,482,758, down from $3,087,112 in Q2 2023, marking a decrease of approximately 52%[30] Membership Growth - Medicare Advantage membership grew 38% to 513,000, while total members on the agilon platform increased 40% to 645,000[1][3] Financial Metrics - Medical margin was $106 million in Q2 2024, down 21% from $134 million in Q2 2023[4] - Adjusted EBITDA showed a loss of $3 million in Q2 2024, compared to earnings of $12 million in Q2 2023[4] - The company expects total revenues for FY 2024 to be between $6.01 billion and $6.04 billion[9] - For Q3 2024, total revenues are projected to be between $1.465 billion and $1.475 billion[10] - The company is maintaining its guidance for medical margin for FY 2024, expecting it to be between $400 million and $450 million[9] Cash and Assets - As of June 30, 2024, agilon health had cash and marketable securities totaling $408 million and total debt of $36 million[8] - Total current assets increased to $1,884,010 as of June 30, 2024, compared to $1,480,076 as of December 31, 2023, representing a growth of 27.3%[18] - Total assets increased to $2,163,315 as of June 30, 2024, from $1,740,866 as of December 31, 2023, representing a growth of 24.2%[18] - Cash and cash equivalents increased to $109,490 as of June 30, 2024, from $107,570 as of December 31, 2023[18] Expenses and Losses - Medical services expense for the three months ended June 30, 2024, was $1,374,060, up from $932,823 in the same period of 2023, reflecting a 47.4% increase[21] - Net loss attributable to common shares for the six months ended June 30, 2024, was $(36,746), compared to a loss of $(727) in the same period of 2023[21] - The company reported a net cash used in operating activities of $(66,493) for the six months ended June 30, 2024, compared to $(82,015) for the same period in 2023[22] - The company reported a net loss of $(30,662) for Q2 2024, compared to a net loss of $(16,795) in Q2 2023[29] Cost Management - Platform support costs for Q2 2024 were $41,687, a decrease from $42,041 in Q2 2023, while total general and administrative costs decreased to $69,612 from $79,254 year-over-year[26] - The company expects platform support costs to decrease over time as revenue grows and physician partners add members[26] - Geography entry costs for Q2 2024 were $4,866, down from $11,306 in Q2 2023, indicating a reduction in expansion-related expenses[26] Strategic Initiatives - The action plan includes improving payor relationships and increasing engagement among primary care physicians (PCPs)[6] - The company aims to onboard 75% of member data into its financial data pipeline by the end of 2024[7]

Core Viewpoint - The Portnoy Law Firm is investigating potential claims against the board of directors of Agilon Health, focusing on possible breaches of fiduciary duties and mismanagement [1]. Group 1: Company Overview - Agilon Health, Inc. specializes in healthcare for seniors by partnering with primary care physicians, providing support for both administrative and financial aspects of care [1]. Group 2: Legal Investigation - The investigation by the Portnoy Law Firm centers on whether Agilon's board of directors has acted in the best interests of shareholders and whether there has been gross mismanagement of the company [1]. - Investors who purchased Agilon shares prior to 2021 are encouraged to discuss their rights and interests regarding this matter with the law firm [1]. Group 3: Investor Support - The Portnoy Law Firm has a history of representing investors in claims related to corporate wrongdoing, having recovered over $5.5 billion for aggrieved investors [2]. - Investors still holding Agilon shares are urged to contact the law firm for assistance [2].