Summary of Alignment Healthcare (ALHC) FY Conference June 04, 2025 Company Overview - **Company**: Alignment Healthcare (ALHC) - **Industry**: Healthcare Services, specifically focusing on Medicare Advantage (MA) plans Key Points and Arguments 1. **Performance Amid Industry Challenges**: Alignment Healthcare is thriving while many peers face difficulties, attributed to a unique operating culture and a focus on quality care for seniors [3][5][12] 2. **Membership and Revenue Growth**: The company reported 89,000 members in 2024 and is guiding for 230,000 members and $3.8 billion in revenue for 2025, indicating a 22% membership growth and 40% revenue growth [6][7] 3. **Quality Ratings**: 98% of members are enrolled in plans rated four stars and above, showcasing the company's commitment to quality [6][31][45] 4. **Care Management Philosophy**: The company emphasizes a care management approach rather than traditional insurance underwriting, focusing on clinical excellence and quality outcomes [12][13] 5. **Data-Driven Care Model**: Alignment utilizes a unified data architecture to identify high-cost members and engage them effectively, leading to better health outcomes and cost management [15][17][18] 6. **Retention Rates**: The company boasts retention rates that are 40% better than the industry average, indicating high member satisfaction [20][32] 7. **Cost Management**: By focusing on preventative care and managing chronic conditions, the company reduces unnecessary hospital admissions, which is reflected in their lower costs compared to competitors [34][36] 8. **Market Positioning**: Alignment's model is designed to scale and improve existing community providers rather than acquiring practices, which differentiates it from competitors [16][29] 9. **Star Ratings Advantage**: The company maintains high star ratings, which allows for better benefits and revenue compared to competitors with declining ratings [45][46] 10. **Future Growth Potential**: The company anticipates significant gross margin expansion as more members mature beyond their first year, projecting a potential gross margin of $600 million [48][49] Additional Important Insights - **Cultural Dynamics**: The company’s success is partly attributed to its strong care delivery culture, which contrasts with the more traditional insurance-focused cultures of larger competitors [42] - **Geographic Expansion**: Growth outside California is accelerating, with the company already reaching 15,000 members in Nevada [44][43] - **Engagement with Vulnerable Populations**: The company focuses on serving the most vulnerable seniors, which not only improves health outcomes but also enhances overall member satisfaction [21][40] - **Long-Term Vision**: The mission is to set a new standard in senior healthcare, emphasizing that everyone involved—seniors, providers, and shareholders—benefits from the model [40][41][52] This summary encapsulates the key insights from the conference, highlighting Alignment Healthcare's strategic advantages, growth trajectory, and commitment to quality care in the Medicare Advantage space.

Core Insights - Alignment Healthcare, Inc. has made its debut on the 2025 Fortune 1000 list, highlighting its rapid growth and financial momentum driven by a senior-focused care model [1][4] - In fiscal year 2024, Alignment generated $2.7 billion in total revenue, representing a 48.3% increase from the previous year, and reported its first full year of positive adjusted EBITDA as a public company [2] - The company serves approximately 217,500 seniors across five states, with over 98% of members enrolled in plans rated 4 stars or higher for 2025 [3] Company Overview - Founded in 2013, Alignment Healthcare focuses on delivering high-quality, low-cost care for Medicare Advantage members through a unique care model that includes 24/7 concierge support and AI-enabled technology [3][5] - The company is the only payer in the Fortune 1000 solely focused on Medicare Advantage, emphasizing its specialized approach in the healthcare market [4] Strategic Focus - Alignment's mission is to empower seniors to age well and live vibrant lives, supported by a dedicated team and partnerships with trusted local providers [5] - The company aims to expand its offerings and national footprint while maintaining its core values of serving seniors first [5]

Group 1 - Alignment Healthcare, Inc. will present at the William Blair 45th Annual Growth Stock Conference on June 4, 2025, at 2 p.m. CDT [1] - A webcast and replay of the presentation will be available on Alignment's investor relations website [1] Group 2 - Alignment Healthcare focuses on empowering seniors to age well and live vibrant lives through its Medicare Advantage offerings [2] - The company partners with trusted local providers to deliver coordinated care using a customized care model and a 24/7 concierge care team [2] - Alignment Healthcare is based in California and is committed to high-quality, low-cost care for its members while expanding its national footprint [2]

Company Overview - Alignment Healthcare (ALHC) is currently ranked 5 in the Zacks Sector Rank within the Medical group, which consists of 999 companies [2] - The Zacks Rank system, which focuses on earnings estimates and revisions, has assigned ALHC a Zacks Rank of 2 (Buy) [3] Performance Metrics - The Zacks Consensus Estimate for ALHC's full-year earnings has increased by 34.1% over the past quarter, indicating improved analyst sentiment and a stronger earnings outlook [4] - Year-to-date, ALHC has returned 44.4%, significantly outperforming the average loss of 4.8% in the Medical group [4] Industry Context - Alignment Healthcare operates within the Medical Services industry, which includes 58 stocks and currently ranks 52 in the Zacks Industry Rank; this industry has seen an average loss of 1.9% this year, highlighting ALHC's relative strength [6] - In contrast, BridgeBio Pharma (BBIO), another outperforming stock in the Medical sector, belongs to the Medical - Generic Drugs industry, which has a lower ranking (198) and has declined by 15.1% this year [6] Future Outlook - Investors interested in Medical stocks should monitor Alignment Healthcare and BridgeBio Pharma for potential continued strong performance [7]

Summary of Alignment Healthcare Conference Call Company Overview - **Company**: Alignment Healthcare - **Industry**: Medicare Advantage Key Points Leadership Transition - Thomas Freeman, the outgoing CFO, has been with the company for ten years, with eight years as CFO, and is stepping down due to personal factors and the company's stability [2][3] - The new CFO, Jim Head, was selected after an exhaustive search, emphasizing the need for someone with experience in Medicare Advantage [6][7] Business Performance - The company reported strong performance metrics, with inpatient admissions per thousand running about 152 better than expectations in Q1 [9] - Anticipated growth for 2025 is expected to be better than 2024, with a focus on proactive care to reduce downstream costs [3][10] Membership Growth - Membership is projected to increase by 50% in 2024 and 30% in 2025, with a focus on managing risk internally rather than transferring it to third parties [14][15] - Year one members typically have a Medical Loss Ratio (MLR) of 89-90%, improving to the low 80s over time [14] Financial Metrics and Projections - The company expects to maintain strong revenue visibility for 2025, with a focus on managing costs effectively [12][13] - The MLR is expected to improve as the company continues to grow its more tenured membership base [14] Part D and Medical Cost Dynamics - The company anticipates higher expenses in the first half of the year due to changes from the Inflation Reduction Act, but expects revenue PMPM growth to outpace expense growth [25][26] - The risk corridor mechanism is expected to shift from a payable to a receivable position as expenses grow [27] Competitive Advantages - Alignment Healthcare has outperformed peers in the Medicare Advantage space due to its efficient cost structure and high-quality care delivery model [32][36] - The company has maintained a focus on care management rather than solely on risk adjustment, which has insulated it from reimbursement exposure [36] Future Outlook - The company is preparing for expansion into new states starting in 2027, with a goal to double its market share in existing areas [56][58] - The company is confident in its ability to maintain high star ratings, which are crucial for competitive positioning in the Medicare Advantage market [58][59] Regulatory Environment - Recent discussions in Washington indicate a positive outlook for Medicare Advantage, with a focus on ensuring that higher risk scores correlate with better clinical outcomes [44][47] - The company is actively engaging with policymakers to demonstrate its effective care delivery model [44][46] Operational Efficiency - The company has successfully onboarded over 100,000 members in the last year and a half with minimal issues, indicating strong operational capabilities [60][61] Additional Insights - The company emphasizes continuous improvement and transparency in its operations, which contributes to its competitive advantage [17][22] - The focus on data-driven decision-making allows the company to identify and address potential risks proactively [21][22]

Core Insights - Alignment Healthcare (ALHC) reported revenue of $926.93 million for the quarter ended March 2025, reflecting a year-over-year increase of 47.5% [1] - The earnings per share (EPS) was -$0.05, an improvement from -$0.25 in the same quarter last year, with an EPS surprise of +58.33% compared to the consensus estimate of -$0.12 [1] Financial Performance Metrics - Medical Benefit Ratio was reported at 88.4%, slightly better than the five-analyst average estimate of 89.6% [4] - Health Plan Membership at the end of the quarter was 217,500, exceeding the average estimate of 213,332 from four analysts [4] - Revenues from other sources were $8.89 million, surpassing the average estimate of $8.05 million based on five analysts, representing a year-over-year change of +26.2% [4] - Earned premiums revenue was $918.04 million, compared to the average estimate of $881.46 million from five analysts, marking a year-over-year increase of 47.7% [4] Stock Performance - Shares of Alignment Healthcare have returned -0.7% over the past month, matching the Zacks S&P 500 composite's -0.7% change [3] - The stock currently holds a Zacks Rank 2 (Buy), indicating potential for outperformance in the near term [3]

Core Insights - Alignment Healthcare reported a quarterly loss of $0.05 per share, better than the Zacks Consensus Estimate of a loss of $0.12, and an improvement from a loss of $0.25 per share a year ago, resulting in an earnings surprise of 58.33% [1] - The company achieved revenues of $926.93 million for the quarter ended March 2025, exceeding the Zacks Consensus Estimate by 4.21%, and showing significant growth from $628.6 million in the same quarter last year [2] - Alignment Healthcare's stock has increased approximately 57.5% year-to-date, contrasting with a -5.3% decline in the S&P 500 [3] Earnings Outlook - The current consensus EPS estimate for the upcoming quarter is -$0.05 on revenues of $940.64 million, and for the current fiscal year, it is -$0.37 on revenues of $3.75 billion [7] - The estimate revisions trend for Alignment Healthcare is favorable, leading to a Zacks Rank 2 (Buy), indicating expected outperformance in the near future [6] Industry Context - The Medical Services industry, to which Alignment Healthcare belongs, is currently ranked in the top 28% of over 250 Zacks industries, suggesting a positive outlook for stocks within this sector [8]

Alignment Healthcare (ALHC) Q1 2025 Earnings Call May 01, 2025 05:00 PM ET Company Participants John Kao - Founder & CEOThomas Freeman - CFORyan Daniels - Group Head–Healthcare Technology and ServicesJohn Ransom - Managing Director, Director of Healthcare ResearchWhit Mayo - Senior Managing DirectorAndrew Mok - Director Conference Call Participants Michael Ha - Senior Research AnalystJessica Tassan - Senior Equity Research AnalystJoanna Gajuk - AnalystMatthew Gillmor - Director & Equity Research AnalystJona ...

Alignment Healthcare (ALHC) Q1 2025 Earnings Call May 01, 2025 05:00 PM ET Speaker0 Good afternoon, and welcome to Alignment Healthcare's First Quarter twenty twenty five Earnings Conference Call and Webcast. At this time, all participants are in a listen only mode. After the speaker presentation, Speaker1 there will be a Speaker0 question and answer session. To ask a question during the session, you will need to press 11 on your telephone. You will then hear an automated message advising your hand has been ...

Table of Contents UNITED STATES SECURITIES AND EXCHANGE COMMISSION WASHINGTON, DC 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 March 31, 2025 OR o TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number: 001-40295 _______________________________________ ALIGNMENT HEALTHCARE, INC ...