Core Insights - Privia Health Group, Inc. has agreed to acquire an Accountable Care Organization (ACO) business from Evolent Health, Inc. for $100 million in cash, with an additional potential payment of $13 million based on Medicare Shared Savings Program performance for 2025 [1][2] - The acquisition will increase Privia's attributed lives in value-based care arrangements to approximately 1.5 million across various programs, enhancing its market presence [2][5] - The transaction is expected to close in the fourth quarter of 2025 and positively impact Adjusted EBITDA in 2026 [1][3] Financial Implications - Evolent Health will finance the transaction using cash from its balance sheet [2] - Evolent reaffirmed its full-year 2025 revenue outlook of $1.85-$1.88 billion, slightly below consensus estimates, and adjusted EBITDA of $140-$165 million [4] - For the third quarter of 2025, Evolent projects revenue of $460-$480 million and adjusted EBITDA of $34-$42 million, also slightly below consensus [3][4] Strategic Value - The acquisition is seen as strategically valuable for Privia, expanding its reach in existing states and adding new states, while providing synergy opportunities for ACO-participating providers to join Privia's Medical Groups [5] - Approximately 80,000 of the acquired lives are participants in the MSSP, where Privia has demonstrated leadership in cost and quality performance, indicating potential for operational leverage [6]

Core Viewpoint - Privia Health Group, Inc. has signed a definitive agreement to acquire an Accountable Care Organization (ACO) business from Evolent Health, which will enhance its value-based care (VBC) capabilities and expand its reach to approximately 1.5 million attributed lives across various healthcare programs [1][3]. Financial Summary - The acquisition will involve an initial payment of $100 million in cash at closing, with an additional potential payment of up to $13 million based on the final performance in the Medicare Shared Savings Program (MSSP) for 2025 [2]. - The transaction is expected to close in the fourth quarter of 2025 and is projected to positively contribute to Adjusted EBITDA in 2026 [2]. Strategic Implications - This strategic acquisition will increase the number of VBC attributed lives in existing Privia states and add new lives in different states, creating synergy opportunities for ACO-participating providers to join Privia's Medical Groups [3]. - The integration of Evolent Health's ACO business into Privia's national network of ACOs will allow the company to replicate its flexible operating model with new provider partners across the U.S. [4]. Company Overview - Privia Health is one of the largest physician enablement companies in the U.S., operating in 15 states and the District of Columbia, and optimizing over 1,300 physician practices to improve patient experiences for more than 5.3 million patients [5]. - The company's mission focuses on transforming healthcare delivery to achieve better outcomes, lower costs, and enhance community health and provider well-being [6].

Core Insights - The U.S. value-based care (VBC) service market is rapidly evolving, attracting investors due to its potential for long-term stability and returns, focusing on integrated care rather than fee-for-service models [1] - CVS Health and Evolent Health are key players in the VBC space, aiming to provide higher-quality care at lower costs [1] CVS Health - CVS Health's Oak Street Health operates over 230 centers nationwide, providing primary care to Medicare-eligible patients and expanding VBC across its businesses, including Aetna and MinuteClinic [2] - The latest quarterly performance showed an 8.4% year-over-year revenue increase, although adjusted EPS decreased by 2 cents to $1.81 [3] - CVS is taking steps to stabilize Aetna and Oak Street, including investing in technology and enhancing leadership [3][4] - Caremark, CVS's pharmacy benefit manager, is performing well with high retention rates and partnerships to expand access to medications [5][6] - CVS raised its full-year revenue outlook to at least $391.5 billion, with adjusted EPS expected between $6.30 and $6.40 [6] Evolent Health - Evolent Health experienced a 31.3% year-over-year revenue decline in Q2 2025, with a loss of 10 cents per share compared to 18 cents EPS in the previous year [7] - Despite the revenue decline, Evolent is focused on organic growth, margin expansion, and capital allocation [7] - The company secured four new revenue agreements in Q2, bringing the year-to-date total to 11 [8] - Evolent has a partnership with Aetna to provide oncology services to 250,000 Medicare Advantage members, expected to generate over $250 million in new revenues by Q1 2026 [10] - Evolent's second-quarter adjusted EBITDA was $37.5 million, with a projected annualized run rate EBITDA improvement of $20 million by year-end [12] Price Performance and Valuation - Year-to-date, CVS shares have increased by 63.7%, while Evolent shares have declined by 23.3% [15] - CVS trades at a forward price-to-sales (P/S) ratio of 0.23X, lower than Evolent's 0.45X [16] - The Zacks Consensus Estimate for CVS's 2025 EPS indicates a 17% year-over-year growth to $6.34, with estimates trending upward [18] - Evolent's EPS estimate has remained stable at 42 cents for the past 90 days, representing a 2.4% increase over 2024 [20] Conclusion - Both CVS and Evolent are positioned as major players in the VBC market, with CVS showing stronger strategic execution and an optimistic full-year outlook, making it appear better positioned than Evolent [21]

Core Insights - Evolent Health, Inc. (NYSE: EVH) has experienced a significant double-digit decline in stock price since January, indicating a poor performance year-to-date [1] Company Performance - The stock price of Evolent Health has shown a very slow and poor performance throughout the year, with a notable double-digit drop [1] Analyst Background - Gamu Dave Innocent Pasi, a financial professional with extensive experience in investment research and analysis, has contributed insights into the financial landscape, focusing on actionable trading ideas and investment recommendations [1]

Core Viewpoint - Evolent Health, Inc. has announced the pricing of $145.0 million in 4.50% convertible senior notes due 2031, aimed at improving financial flexibility and reducing interest expenses while minimizing shareholder dilution [1][2][5]. Group 1: Transaction Details - The offering size was increased from $140.0 million to $145.0 million, with an additional option for initial purchasers to buy up to $21.75 million more [1]. - Evolent expects net proceeds of approximately $140.2 million, or $161.2 million if the additional notes option is fully exercised, which will be used primarily to repurchase existing convertible senior notes [5][7]. - The notes will mature on August 15, 2031, and interest will be paid semiannually at a rate of 4.50% [6]. Group 2: Conversion and Repurchase Terms - The notes are convertible at the option of the holders prior to maturity, with an initial conversion price of approximately $13.53 per share, representing a 50% premium over the closing price on August 18, 2025 [6]. - Evolent may terminate conversion rights under certain conditions related to the stock price performance [3]. - Holders can require Evolent to repurchase their notes upon a "fundamental change" at 100% of the principal amount plus accrued interest [4]. Group 3: Share Repurchase Impact - Evolent plans to repurchase approximately 4.43 million shares of its Class A common stock at a price of $9.02 per share, which may influence the market price of both the stock and the notes [8][9]. - The repurchase of shares sold short by initial investors could lead to increased market activity affecting the stock price [9]. Group 4: Company Overview - Evolent Health specializes in improving health outcomes for individuals with complex conditions and serves a national base of leading payers and providers [13].

Core Viewpoint - Evolent Health, Inc. plans to offer $140 million in convertible senior notes due 2031, with an option for initial purchasers to buy an additional $20 million, aimed at improving financial flexibility and supporting share repurchases [1][2]. Group 1: Offering Details - The offering consists of $140 million aggregate principal amount of convertible senior notes due 2031, subject to market conditions [1]. - Evolent expects to use up to $100 million of the net proceeds to repurchase a portion of its existing 1.50% convertible senior notes due 2025 and approximately $40 million for repurchasing shares of its Class A common stock [2]. - The notes will be convertible into cash, shares of Evolent's Class A common stock, or a combination thereof, with interest payable semiannually starting February 15, 2026 [4]. Group 2: Repurchase Strategy - Evolent plans to repurchase shares of its Class A common stock sold short by initial investors at a price equal to the last reported sale price on the pricing date, which may influence the market price of the stock [3]. - The company anticipates that holders of the 2025 Notes who agree to have their notes repurchased may unwind their hedges by buying Evolent's Class A common stock, potentially affecting the stock price [6]. Group 3: Conversion Rights - The conversion rights of the notes may be terminated by Evolent on or after August 20, 2026, under specific conditions related to the stock price performance [5]. - The conversion price and other terms of the notes will be determined at the time of the offering's pricing [4]. Group 4: Regulatory Information - The notes and any Class A common stock issued upon conversion will not be registered under the Securities Act, and may only be offered to qualified institutional buyers [7]. - The press release does not constitute an offer to sell or a solicitation to buy the securities described [8]. Group 5: Company Overview - Evolent Health specializes in improving health outcomes for individuals with complex conditions, serving a national base of leading payers and providers [9].

Evolent Health (EVH) FY Conference Summary Company Overview - **Company**: Evolent Health (EVH) - **Date of Conference**: August 13, 2025 - **Key Speakers**: CFO John Johnson, Richard Close from Canaccord Key Points and Arguments Financial Performance - **EBITDA Outperformance**: Evolent Health reported a strong performance in EBITDA, achieving a second consecutive beat for the year, leading to an increase in the lower end of their EBITDA guidance [5][12] - **Revenue Decline**: Despite the positive EBITDA performance, revenue guidance was lowered due to timing issues with performance suites and risk-based contracts [12][14] - **Claims Development**: Favorable claims development was noted, with trends below the 12% forecast for oncology costs, which were projected at a 10.5% trend for the year [5][6][26] Revenue Guidance Changes - **Partnership with Aetna**: A significant new partnership with Aetna for their Medicare Advantage population in Florida was announced, with a delay in the go-live date to Q1 of the following year due to data exchange preparations [14][16] - **Regulatory Delays**: A performance suite contract was delayed due to regulatory issues but is now set to go live on September 1 [16][17] - **Guidance Philosophy Shift**: The company adjusted its guidance philosophy, moving the fully contracted revenue point to the midpoint of the range to allow for potential faster deterioration in exchange membership [17][18] Cost Trends and Oncology - **Oncology Cost Trends**: The company is forecasting a 12% trend in oncology costs but is currently experiencing a trend of about 10.5%. The stability in authorization data is noted as a positive sign compared to the previous year's volatility [23][25][26][27] - **Pandemic Impact**: The spikes in cancer cases last year were attributed to pandemic-related factors, with expectations of a return to normal trends moving forward [27] Market Dynamics and Partnerships - **Vendor Consolidation Trend**: Evolent Health aims to be the enterprise partner of choice for managed care organizations, capitalizing on a trend of vendor consolidation in the industry [29][30] - **Regulatory Pressures**: Increasing regulatory requirements are driving managed care organizations to seek external partners like Evolent to meet commitments on turnaround times and data integration [36][38] Future Outlook - **Revenue Projections**: Evolent Health anticipates generating approximately $2.5 billion in revenue for the next year, supported by a robust pipeline of over $1 billion [41][33] - **EBITDA Growth**: The company aims for a 20% year-over-year growth in adjusted EBITDA, driven by both organic growth and margin expansion initiatives [43][41] - **AI Integration**: Evolent is on track to achieve a $20 million net improvement in unit costs through AI initiatives, with a long-term goal of $50 million in net EBITDA benefits [45][46] Cash Flow and Capital Allocation - **Cash Flow Expectations**: The company expects to generate about $65 million in cash from operations for the remainder of the year, following a one-time cash usage of $85 million in the first half [49][50] - **Deleveraging Strategy**: Evolent plans to deleverage by approximately one turn per year, focusing on capital allocation priorities [50] Additional Important Insights - **Data Connectivity Investments**: Evolent is investing in data connectivity and interoperability, which is expected to become an industry standard by 2027, enhancing their competitive position [39][40] - **Engagement with Regulatory Bodies**: The company is actively involved in discussions with AHIP and HHS to influence value-based care directions [40]

PART I - FINANCIAL INFORMATION [Item 1. Financial Statements](index=6&type=section&id=Item%201.%20Financial%20Statements) This section presents the unaudited interim consolidated financial statements for Evolent Health, Inc. as of June 30, 2025, and for the three and six-month periods then ended Consolidated Balance Sheet Highlights (Unaudited) | (in thousands) | June 30, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $150,995 | $104,203 | | Total current assets | $562,257 | $607,117 | | Goodwill | $1,137,321 | $1,137,320 | | Total assets | $2,461,532 | $2,544,411 | | **Liabilities & Equity** | | | | Total current liabilities | $557,519 | $715,501 | | Long-term debt, net | $648,455 | $490,520 | | Total liabilities | $1,336,727 | $1,352,979 | | Total shareholders' equity | $896,005 | $1,001,259 | Consolidated Statement of Operations Highlights (Unaudited) | (in thousands, except per share data) | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Revenue | $927,977 | $1,286,798 | | Total operating expenses | $930,770 | $1,292,419 | | Operating income (loss) | $(2,793) | $(5,621) | | Net loss attributable to common shareholders | $(123,340) | $(31,608) | | Loss per common share - Basic and diluted | $(1.07) | $(0.28) | Consolidated Statement of Cash Flows Highlights (Unaudited) | (in thousands) | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(25,769) | $26,326 | | Net cash used in investing activities | $(73,624) | $(23,273) | | Net cash provided by (used in) financing activities | $98,927 | $(88,499) | | Net decrease in cash and cash equivalents | $(526) | $(85,508) | [Note 4. Transactions](index=20&type=section&id=Note%204.%20Transactions) On August 1, 2024, the company acquired certain assets of Machinify, Inc. for $28.5 million, enhancing its AI capabilities Machinify Acquisition Purchase Price Allocation (August 1, 2024) | (in thousands) | Amount | | :--- | :--- | | **Purchase Consideration** | | | Cash | $19,500 | | Fair value of contingent consideration | $9,000 | | **Total consideration** | **$28,500** | | **Allocation** | | | Technology (Intangible Asset) | $7,700 | | Goodwill | $20,809 | | Liabilities assumed | $9 | | **Net assets acquired** | **$28,500** | [Note 5. Revenue Recognition](index=20&type=section&id=Note%205.%20Revenue%20Recognition) Revenue is primarily from multi-year contracts for care management services, recognized over time, with a significant year-over-year decrease in Medicare and Performance Suite revenue Disaggregation of Revenue by Line of Business (in thousands) | Line of Business | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Medicaid | $193,018 | $217,068 | $381,142 | $432,192 | | Medicare | $109,042 | $268,673 | $224,360 | $555,633 | | Commercial and other | $142,268 | $161,404 | $322,475 | $298,973 | | **Total** | **$444,328** | **$647,145** | **$927,977** | **$1,286,798** | Disaggregation of Revenue by Product Type (in thousands) | Product Type | Q2 2025 | Q2 2024 | YTD 2025 | YTD 2024 | | :--- | :--- | :--- | :--- | :--- | | Performance Suite | $267,917 | $461,602 | $570,938 | $909,820 | | Specialty Technology and Services Suite | $81,401 | $81,515 | $164,222 | $170,518 | | Administrative Services | $55,880 | $60,770 | $113,071 | $119,339 | | Cases | $39,130 | $43,258 | $79,746 | $87,121 | | **Total** | **$444,328** | **$647,145** | **$927,977** | **$1,286,798** | [Note 8. Goodwill and Intangible Assets, Net](index=25&type=section&id=Note%208.%20Goodwill%20and%20Intangible%20Assets%2C%20Net) As of June 30, 2025, the company held $1.14 billion in goodwill and $651.2 million in net intangible assets, with no impairment identified - The annual goodwill impairment test as of October 31, 2024, concluded that goodwill was not impaired, as the reporting unit's fair value exceeded its carrying value by approximately **$336.0 million**, or **13.6%**[96](index=96&type=chunk) - Amortization expense for intangible assets decreased to **$33.6 million** for the six months ended June 30, 2025, from **$44.0 million** in the prior year period, primarily because several corporate trade names were fully amortized by December 2024[99](index=99&type=chunk) [Note 9. Debt](index=29&type=section&id=Note%209.%20Debt) The company's debt includes $575 million in Convertible Senior Notes and a First Lien Credit Agreement, with a new $150.0 million facility secured to retire 2025 Notes Summary of Convertible Senior Notes (as of June 30, 2025) | Term | 2025 Notes | 2029 Notes | | :--- | :--- | :--- | | Aggregate principal amount | $172,500,000 | $402,500,000 | | Interest rate | 1.5% | 3.5% | | Maturity date | Oct 15, 2025 | Dec 1, 2029 | | Conversion price | $33.43 | $38.00 | | Carrying value | $172,119,000 | $393,880,000 | - During the six months ended June 30, 2025, the Company borrowed **$200.0 million** under its Term Loan Facility. As of June 30, 2025, **$262.5 million** was outstanding under the Term Loan and Revolving Facilities[128](index=128&type=chunk) - On June 19, 2025, the company secured a commitment letter from Ares for up to **$150.0 million** in additional debt capital to retire its 2025 Notes and for working capital[118](index=118&type=chunk) [Note 10. Commitments and Contingencies](index=33&type=section&id=Note%2010.%20Commitments%20and%20Contingencies) The company faces significant revenue concentration risk with key partners and has a Tax Receivables Agreement liability of $108.1 million Revenue Concentration by Partner (YTD) | Partner | % of Revenue YTD 2025 | % of Revenue YTD 2024 | | :--- | :--- | :--- | | Molina Healthcare, Inc. | 24.1% | 12.1% | | Cook County Health and Hospitals System | 16.5% | 11.2% | | Florida Blue Medicare, Inc. | 14.5% | 12.6% | | Centene Corporation | 11.2% | * | | Humana Insurance Company | * | 21.7% | | *Represents less than 10.0%* | | | - As of June 30, 2025, the company had a Tax Receivables Agreement (TRA) liability of **$108.1 million**, representing its obligation to pay certain pre-IPO investors 85% of specific tax benefits it realizes[136](index=136&type=chunk)[137](index=137&type=chunk) [Note 16. Investments and Equity Method Investees](index=39&type=section&id=Note%2016.%20Investments%20and%20Equity%20Method%20Investees) In Q2 2025, the company purchased the remaining interest in an equity method investment for $51.5 million, recognizing a $52.5 million loss - In Q2 2025, the company purchased the remaining portion of an equity method investment for **$51.5 million**, recognizing a loss of **$52.5 million**, which represents the difference between the fixed purchase price and the estimated fair value of the interests acquired[172](index=172&type=chunk) [Note 21. Reserve for Claims and Performance-Based Arrangements](index=46&type=section&id=Note%2021.%20Reserve%20for%20Claims%20and%20Performance-Based%20Arrangements) The company's reserve for claims and performance-based arrangements decreased to $187.3 million as of June 30, 2025, due to claims payments exceeding newly incurred costs Activity in Reserves for Claims and Performance-Based Arrangements (in thousands) | | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Balance, beginning of period | $318,705 | $404,048 | | Total claims incurred | $420,239 | $731,158 | | Total claims paid | $(551,693) | $(817,643) | | **Balance, end of period** | **$187,251** | **$317,563** | [Note 23. Subsequent Events](index=48&type=section&id=Note%2023.%20Subsequent%20Events) Subsequent to quarter-end, the "One Big Beautiful Bill Act" was enacted, and the company exchanged its Series A Preferred Shares for a new second lien term loan facility - On August 7, 2025, the company completed the exchange of its Series A Preferred Shares for a new second lien term loan facility with similar economic terms but without a common stock conversion feature[209](index=209&type=chunk) [Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations](index=48&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses the company's financial performance, highlighting a significant revenue decrease in H1 2025 due to contractual updates, while medical claims cost growth slowed [Recent Events and Industry Climate](index=48&type=section&id=Recent%20Events%20and%20Industry%20Climate) Medical claims costs continued to rise in H1 2025, albeit at a slower pace, and the company completed a significant financing transaction by exchanging Series A Preferred Shares - Medical claims costs in the Performance Suite continued to grow faster than historical averages in the first half of 2025, though at a slower pace than in previous quarters, impacting financial results[216](index=216&type=chunk) - On August 7, 2025, the company exchanged its Series A Preferred Shares for a new second lien term loan, which has substantively similar economic terms but lacks a common stock conversion feature[221](index=221&type=chunk) [Results of Operations](index=51&type=section&id=Results%20of%20Operations) Revenue for the first six months of 2025 decreased by 27.9% to $928.0 million due to contractual changes, leading to a shift towards higher-margin business Consolidated Results Summary (YTD) | (in thousands) | YTD 2025 | YTD 2024 | Change ($) | Change (%) | | :--- | :--- | :--- | :--- | :--- | | Revenue | $927,977 | $1,286,798 | $(358,821) | (27.9)% | | Cost of revenue | $725,121 | $1,075,849 | $(350,728) | (32.6)% | | Selling, general and administrative | $153,618 | $148,289 | $5,329 | 3.6% | | Operating income (loss) | $(2,793) | $(5,621) | $2,828 | 50.3% | - The decrease in total revenue for the first six months of 2025 was primarily driven by contractual updates, including transitioning a customer from Performance Suite to Specialty Technology and Services Suite (**$257.6 million** impact) and narrowing the scope with other Performance Suite customers (**$96.6 million** impact)[255](index=255&type=chunk) - Cost of revenue as a percentage of total revenue decreased from **83.6%** to **78.1%** for the six months ended June 30, year-over-year, reflecting a shift in business mix towards higher-margin product types[258](index=258&type=chunk) [Liquidity and Capital Resources](index=57&type=section&id=Liquidity%20and%20Capital%20Resources) As of June 30, 2025, the company had $151.0 million in cash, with net cash used in operating activities of $25.8 million, primarily due to prior-year contract payments Summary of Cash Flows (in thousands) | | For the Six Months Ended June 30, 2025 | For the Six Months Ended June 30, 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(25,769) | $26,326 | | Net cash used in investing activities | $(73,624) | $(23,273) | | Net cash provided by (used in) financing activities | $98,927 | $(88,499) | - Cash used in operating activities for H1 2025 was primarily driven by **$67.5 million** in payments to clients for reconciliations of prior-year Performance Suite contracts that have since been restructured[277](index=277&type=chunk) [Item 3. Quantitative and Qualitative Disclosures About Market Risk](index=60&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate fluctuations, with a 1% SOFR increase leading to a $2.63 million rise in annual interest expense - The company is exposed to interest rate risk on its variable-rate debt. For every **1%** increase in the SOFR, annual interest expense on outstanding term and revolving loans would increase by **$2.63 million**[294](index=294&type=chunk) [Item 4. Controls and Procedures](index=60&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025, with no material changes in internal control over financial reporting - Management concluded that the company's disclosure controls and procedures were effective as of June 30, 2025[299](index=299&type=chunk) PART II - OTHER INFORMATION [Item 1. Legal Proceedings](index=62&type=section&id=Item%201.%20Legal%20Proceedings) A shareholder derivative action was dismissed in January 2023, and a subsequent demand for litigation was refused by the Board after an investigation - A shareholder derivative action was dismissed in January 2023. The Board later investigated and refused a subsequent shareholder demand to commence litigation related to the same matters[139](index=139&type=chunk)[304](index=304&type=chunk) [Item 1A. Risk Factors](index=62&type=section&id=Item%201A.%20Risk%20Factors) The company updates its risk factors, emphasizing those related to significant indebtedness, potential need for additional financing, and restrictive covenants - The company highlights significant risks associated with its substantial debt, which could make it difficult to satisfy obligations, limit its ability to obtain additional financing, and place it at a competitive disadvantage[306](index=306&type=chunk)[314](index=314&type=chunk) - Restrictive covenants in the company's Credit Agreements impose limitations on incurring additional debt, selling assets, making investments, and paying dividends, which could interfere with business activities[316](index=316&type=chunk)[320](index=320&type=chunk) [Item 5. Other Information](index=65&type=section&id=Item%205.%20Other%20Information) On August 7, 2025, the company exchanged its Series A Preferred Shares for a new $175.0 million second lien term loan facility, removing the common stock conversion feature - On August 7, 2025, the company exchanged its Series A Preferred Shares for a new **$175.0 million** second lien term loan facility, which has similar economic terms but no equity conversion feature[323](index=323&type=chunk)[324](index=324&type=chunk) - The new Second Lien Term Loan Facility matures on December 6, 2029, and carries an interest rate of SOFR + **6.00%** or ABR + **5.00%**, subject to step-downs[325](index=325&type=chunk)[326](index=326&type=chunk)

Core Insights - Evolent Health reported a revenue of $444.33 million for the quarter ended June 2025, marking a year-over-year decline of 31.3% and an EPS of -$0.10 compared to $0.30 a year ago, indicating significant financial challenges [1] - The revenue fell short of the Zacks Consensus Estimate of $457.4 million by 2.86%, and the EPS was below the consensus estimate of $0.09 by 211.11% [1] Financial Performance - Evolent Health's stock has returned -16.7% over the past month, contrasting with the Zacks S&P 500 composite's +1.2% change, suggesting underperformance relative to the broader market [3] - The company currently holds a Zacks Rank 3 (Hold), indicating it may perform in line with the market in the near term [3] Key Metrics Analysis - Average PMPM Fees / Revenue per Case for Performance Suite was $13.76, below the estimated $14.21 [4] - Average PMPM Fees / Revenue per Case for Specialty Technology and Services Suite was $0.35, slightly below the estimated $0.36 [4] - Average PMPM Fees / Revenue per Case for Administrative Services was $15.13, compared to the estimated $15.82 [4] - Average Lives on Platform / Cases for Cases was 13 thousand, below the estimated 14.39 thousand [4] - Average Lives on Platform / Cases for Performance Suite was 6.49 million, slightly above the estimated 6.48 million [4] - Average Lives on Platform / Cases for Specialty Technology and Services Suite was 77.02 million, below the estimated 77.71 million [4] - Average Lives on Platform / Cases for Administrative Services was 1.23 million, slightly above the estimated 1.22 million [4] - Average PMPM Fees / Revenue per Case for Cases was $2,969.00, below the estimated $3,008.56 [4]

Company Performance - Evolent Health reported a quarterly loss of $0.1 per share, missing the Zacks Consensus Estimate of $0.09, and down from earnings of $0.3 per share a year ago, representing an earnings surprise of -211.11% [1] - The company posted revenues of $444.33 million for the quarter ended June 2025, missing the Zacks Consensus Estimate by 2.86%, and down from $647.15 million year-over-year [2] - Evolent Health has not surpassed consensus EPS estimates over the last four quarters and has topped consensus revenue estimates only once during the same period [2] Stock Performance - Evolent Health shares have declined approximately 16.4% since the beginning of the year, contrasting with the S&P 500's gain of 7.9% [3] - The current Zacks Rank for Evolent Health is 3 (Hold), indicating that the shares are expected to perform in line with the market in the near future [6] Future Outlook - The current consensus EPS estimate for the upcoming quarter is $0.12 on revenues of $539.68 million, and for the current fiscal year, it is $0.40 on revenues of $2.06 billion [7] - The outlook for the Medical Info Systems industry, where Evolent Health operates, is currently in the top 37% of Zacks industries, suggesting a favorable environment for stock performance [8]