Dr. David Lim joins Evolent as chief clinical officer John Way joins Evolent as CFO, Performance SuiteWASHINGTON, July 9, 2025 /PRNewswire/ -- Evolent Health, Inc. (NYSE: EVH), a company focused on achieving better health outcomes for people with complex conditions, today announced leadership additions to its clinical and financial teams, as it continues to drive innovation in specialty care.Physician, executive and startup entrepreneur Dr. David Lim has joined the company as chief clinical officer, where ...

Company Overview - Evolent Health (EVH) shares increased by 6.9% to close at $9.25, with notable trading volume compared to typical sessions, and a total gain of 17.5% over the past four weeks [1] - The company is a provider of health care software and consulting services [3] Financial Performance - Evolent Health's Q2 2025 adjusted EBITDA guidance is set at $33-$40 million, while the full year adjusted EBITDA guidance is projected to be between $135 million and $165 million [2] - The upcoming quarterly earnings are expected to be $0.09 per share, reflecting a year-over-year decline of 70%, with revenues anticipated at $457.4 million, down 29.3% from the same quarter last year [3] Market Sentiment - Investor optimism regarding Evolent Health's 2025 financial guidance is driving the stock's price rise [2] - The consensus EPS estimate for the quarter has remained unchanged over the last 30 days, indicating that stock price movements may not sustain without trends in earnings estimate revisions [4] Industry Context - Evolent Health is part of the Zacks Medical Info Systems industry, which includes other companies like American Well Corporation (AMWL) [4] - American Well's consensus EPS estimate has increased by 5.7% over the past month, with a year-over-year change of 43.5% [5]

Core Insights - Evolent Health, Inc. is experiencing oncology cost trends below expectations for 2025, leading to a positive outlook for Q2 and full-year Adjusted EBITDA guidance [1][2] - The company has signed a Commitment Letter with Ares Management Credit funds to secure additional non-dilutive capital, which will support its growth and address 2025 Convertible Notes [2][3] - Evolent has significantly increased its forecast for new revenue bookings going into 2026 due to an acceleration in business development activities [3] Financial Guidance - The company reiterates its Q2 2025 Adjusted EBITDA guidance of $33 million to $40 million and full-year guidance of $135 million to $165 million [1][2] - If current trends continue, Evolent anticipates being in the top half of its Q2 Adjusted EBITDA range [2] Strategic Initiatives - The availability of incremental non-dilutive capital will allow Evolent to meet working capital needs associated with its higher growth forecast [3] - Evolent focuses on improving health outcomes for individuals with complex conditions through innovative solutions [3]

Evolent Health (EVH) FY Conference Summary Company Overview - **Company**: Evolent Health (EVH) - **Industry**: Healthcare Services, specifically focusing on oncology, cardiology, and musculoskeletal (MSK) conditions - **Key Executives**: Seth Blackley (CEO), John Johnson (CFO) Core Points and Arguments 1. **Market Dynamics**: The healthcare market has faced significant headwinds, including MA plans exiting markets and Medicaid redetermination affecting customer coverage. Despite these challenges, there is a strong demand for Evolent's solutions, indicating a positive long-term growth outlook [3][4] 2. **Oncology Focus**: Evolent's primary focus is on oncology, which is a critical area as 40% of individuals will be diagnosed with cancer in their lifetime. The company aims to improve the accuracy of cancer diagnoses and treatment plans from 65% to 85% adherence to evidence-based medicine [7][8][9] 3. **Customer Base**: Evolent's main customers include major insurance companies such as Humana, Centene, and Molina. The company helps these insurers manage quality and adherence to treatment protocols [10][11] 4. **Operational Scale**: Evolent employs 4,500 staff, including 1,500 clinical professionals and 350 physicians, conducting 8 million case reviews annually in oncology and related fields [12] 5. **Cost Reduction**: Evolent's interventions typically lead to a 20% reduction in total costs over three years, although some cases may result in higher costs due to more effective treatments being recommended [18][19] 6. **Revenue Potential**: Evolent currently generates approximately $2 billion in revenue, with a cross-sell opportunity of $50 billion among existing clients, representing one-third of the total addressable market (TAM) of $150 billion [22][23] 7. **Sales Pipeline**: The weighted sales pipeline has more than doubled over the past year, driven by increasing demand for oncology solutions [25] 8. **Clinical Decision Support**: Evolent utilizes AI and clinical decision support to enhance treatment plans, ensuring adherence to best practices and improving patient outcomes [26][29] 9. **Provider Alignment**: The company engages in peer-to-peer consultations and provides financial incentives to physicians to encourage adherence to evidence-based practices [36][38] 10. **Technology Integration**: Evolent has launched a patient navigation app to assist patients in managing their symptoms and connecting with healthcare professionals [39] Additional Important Insights 1. **Market Challenges**: The managed care market has faced significant challenges, with the current underwriting cycle being particularly difficult. Evolent is focused on margin expansion and improving operational efficiency through automation and AI [45][48] 2. **Alternative Payment Models**: Evolent employs alternative payment models to align incentives between payers and providers, ensuring that oncologists are compensated fairly while reducing overall treatment costs for patients [57][62] 3. **Future Outlook**: The company is optimistic about growth, targeting over 15% organic top-line growth, with less than 5% market share in a vast market of cancer cases [43][44] 4. **Focus on Balance Sheet**: Evolent is prioritizing deleveraging and improving its balance sheet, aiming to reduce leverage ratios over time [53] This summary encapsulates the key points discussed during the Evolent Health FY Conference, highlighting the company's strategic focus, market opportunities, and operational insights.

Company Performance - Evolent Health reported quarterly earnings of $0.06 per share, missing the Zacks Consensus Estimate of $0.09 per share, and down from $0.34 per share a year ago, representing an earnings surprise of -33.33% [1] - The company posted revenues of $483.65 million for the quarter ended March 2025, surpassing the Zacks Consensus Estimate by 4.76%, but down from $639.65 million year-over-year [2] - Over the last four quarters, Evolent Health has surpassed consensus EPS estimates just once and topped consensus revenue estimates two times [2] Stock Outlook - Evolent Health shares have declined approximately 7.1% since the beginning of the year, compared to a decline of -4.3% for the S&P 500 [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to those expectations [4] - The current consensus EPS estimate for the coming quarter is $0.10 on revenues of $492.27 million, and for the current fiscal year, it is $0.42 on revenues of $2.07 billion [7] Industry Context - The Internet - Software industry, to which Evolent Health belongs, is currently ranked in the top 37% of over 250 Zacks industries, indicating a favorable outlook [8] - Empirical research shows a strong correlation between near-term stock movements and trends in earnings estimate revisions, which can impact Evolent Health's stock performance [5] - Another company in the same industry, Guidewire Software, is expected to report quarterly earnings of $0.46 per share, reflecting a year-over-year change of +76.9% [9]

Financial Data and Key Metrics Changes - Q1 revenue reached $483.6 million, impacted by two offsetting items, with an adjusted revenue estimate of approximately $450 million without these items [22][24] - The company ended the quarter with cash of $247 million and total liquidity exceeding $300 million, resulting in a net leverage ratio of 4.1 times the last twelve months adjusted EBITDA [27] Business Line Data and Key Metrics Changes - The company added five new revenue agreements in Q1, expanding its reach in surgical management, medical oncology technology services, and musculoskeletal services, expected to generate approximately $10 million in annualized revenue [6][8] - Renewals with existing customers remain strong, with one of the top 10 customers renewing through 2030 [8] Market Data and Key Metrics Changes - The selling environment across Technology and Services and the Performance Suite is reported to be very favorable, with the Performance Suite pipeline being the largest in the firm's history [9] - The company remains less than 5% penetrated in its broader revenue opportunity across all products, indicating significant growth potential [9] Company Strategy and Development Direction - The company focuses on three pillars for shareholder value creation: organic growth, expanding profitability, and optimal capital allocation [5] - Plans for 2025 include balance sheet management, debt paydown, and purchasing oncology navigation assets to accelerate oncology strategy [11][28] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in meeting or exceeding long-term growth targets, citing strong demand for specialty condition management solutions [5] - The company anticipates positive operating cash flow for the remainder of the year and plans to continue investing in organic growth [11] Other Important Information - The company reported an employee engagement rate of 89%, indicating strong internal morale which is seen as a leading indicator of performance [19] - The company is not currently expecting any new M&A transactions in the near term but views it as an attractive long-term strategy [11] Q&A Session Summary Question: Is the PMPM level a good baseline going forward? - Management indicated that the current PMPM level is a good baseline, with expectations for a slight increase due to a large new performance suite go-live later in the year [36] Question: What is the visibility on the oncology trend? - Management provided insight that leading indicators show a slight decrease in authorizations, with claims completion for Q1 being about 55-60% complete [40][41] Question: Can you elaborate on the expansion of oncology products? - Management highlighted that the navigation solution is expected to increase value or savings opportunities by 10% to 20%, enhancing the overall oncology management approach [46] Question: What was the growth reduction from recontracting? - Management noted that approximately 600,000 lives converted out of performance suites into technology and services, offset by growth in other areas [49] Question: How has the competitive environment evolved? - Management stated that the competitive environment has not changed significantly, with consistent win rates and a strong pipeline indicating ongoing demand [75] Question: How would potential tariffs impact the model? - Management indicated that performance suite arrangements contain clauses allowing for updates to capitation rates in response to significant changes in unit costs, minimizing potential impacts on profitability [80]

Evolent Health (EVH) Q1 2025 Earnings Call May 08, 2025 05:00 PM ET Speaker0 Welcome to the Evolent Earnings Conference Call for the First Quarter Ended 03/31/2025. As a reminder, this conference call is being recorded. Your hosts for the call today from Evolent are Seth Blackley, Chief Executive Officer and John Johnson, Chief Financial Officer. This call will be archived and available later this evening and for the next week via the webcast on the company's website in the section titled Investor Relations ...

Financial Performance - Total revenue for Q1 2025 was $483,649, a decrease of 24.4% compared to $639,653 in Q1 2024[21] - Operating loss for Q1 2025 was $1,622, significantly improved from a loss of $13,409 in Q1 2024[21] - Net loss attributable to common shareholders for Q1 2025 was $72,250, compared to a loss of $25,225 in Q1 2024, representing a 186.5% increase in losses[21] - The company reported a basic and diluted loss per common share of $0.63 for Q1 2025, compared to $0.22 for Q1 2024[21] - For the three months ended March 31, 2025, the net loss before preferred dividends was $64,618,000, compared to a net loss of $17,280,000 for the same period in 2024, indicating a significant increase in losses[28] - The net cash provided by operating activities for the three months ended March 31, 2025, was $4,565,000, slightly down from $4,909,000 in the same period of 2024[28] - The company incurred a loss on option exercise amounting to $52,348,000 during the three months ended March 31, 2025, which was a new expense not reported in the previous year[28] - The company recorded total dividends and accretion related to the Series A Preferred Stock of $7.63 million for the three months ended March 31, 2025[151] - The net loss attributable to common shareholders for the three months ended March 31, 2025, was $72,250,000, compared to a net loss of $25,225,000 for the same period in 2024[187] Cash and Liquidity - Cash and cash equivalents increased to $246,547 in Q1 2025 from $104,203 in Q4 2024, reflecting a 136.5% increase[17] - As of March 31, 2025, the company had unrestricted cash and cash equivalents of $246.5 million, indicating sufficient liquidity to meet working capital and capital expenditure requirements for at least the next twelve months[32] - Approximately 96.6% of the Company's $277.8 million in cash and cash equivalents were held in FDIC participating banks or overnight sweep accounts, while 3.4% were in international banks[130] Assets and Liabilities - Total assets rose to $2,653,451 in Q1 2025, up from $2,544,411 in Q4 2024, marking a 4.3% increase[18] - Total liabilities increased to $1,524,702 in Q1 2025 from $1,352,979 in Q4 2024, representing a 12.7% rise[18] - Current liabilities totaled $739,097 in Q1 2025, compared to $715,501 in Q4 2024, indicating a 3.3% increase[18] - Long-term debt increased to $647,532 in Q1 2025 from $490,520 in Q4 2024, a significant increase of 32.0%[18] - Total shareholders' equity decreased to $935,521 in Q1 2025 from $1,001,259 in Q4 2024, a decline of 6.6%[18] Revenue and Contracts - Medicaid revenue for the three months ended March 31, 2025, was $188.124 million, down from $215.124 million in 2024, while Medicare revenue dropped from $286.960 million to $115.318 million[76] - The company recognizes revenue over time using the time elapsed output method, with fixed consideration recognized ratably over the contract term[74] - The company’s revenue contracts are typically multi-year arrangements aimed at lowering medical expenses for partners[72] - Approximately $29.6 million of transaction price has been allocated to performance obligations that are unsatisfied as of March 31, 2025, with an expectation to recognize 85% of this by December 31, 2025[77] Investments and Acquisitions - The company completed the acquisition of Machinify, Inc. for a total consideration of $28.5 million, including $19.5 million in cash and a contingent consideration fair valued at $9.0 million[70][71] - Identifiable intangible assets acquired from Machinify will be amortized on a straight-line basis over an estimated useful life of 5 years[71] - The contingent consideration related to the Machinify transaction includes an earn-out consideration of $1,102,000 as of March 31, 2025, compared to $1,900,000 as of December 31, 2024[171] Expenses and Costs - Medical expenses and device costs for the three months ended March 31, 2025, totaled $292,676,000, down from $431,336,000 in 2024[187] - The company incurred total costs of $9,929,000 associated with its repositioning plans for the three months ended March 31, 2024[185] - The company experienced pricing pressures from competitive pricing and rising costs for inflation-sensitive operating expenses, but these did not materially impact revenues or net income in early 2025[208] Tax and Equity - The Company recognized an income tax provision of $1.5 million for the three months ended March 31, 2025, resulting in an effective tax rate of (2.3)%[158] - The Company had unrecognized tax benefits of $2.5 million as of March 31, 2025, which could affect the overall effective tax rate if recognized[159] Reserves and Claims - The company maintains reserves for liabilities related to payments to providers and pharmacies under performance-based arrangements, reflecting actual payments and incurred but not reported claims[189] - The balance for reserves related to claims and performance-based arrangements increased to $333,842 thousand as of March 31, 2025, compared to $368,639 thousand in the prior year[196] - Total claims incurred for the three months ended March 31, 2025, were $205,992 thousand, a decrease from $359,693 thousand in the same period of 2024[196]

Certain statements made in this report and in other written or oral statements made by us or on our behalf are "forward-looking statements" within the meaning of the Private Securities Litigation Reform Act of 1995 ("PSLRA"). A forward-looking statement is a statement that is not a historical fact and, without limitation, includes any statement that may predict, forecast, indicate or imply future results, performance or achievements, and may contain words like: "believe," "anticipate," "expect," "estimate," ...

[Evolent First Quarter 2025 Results Announcement](index=1&type=section&id=Evolent%20Announces%20First%20Quarter%202025%20Results) Evolent announced strong Q1 2025 results at the high end of expectations, reiterating full-year outlook and securing five new revenue agreements [First Quarter 2025 Highlights](index=1&type=section&id=First%20Quarter%202025%20Highlights) Evolent reported Q1 2025 results at the high end of expectations, with strong revenue and Adjusted EBITDA, reiterating its full-year outlook - CEO Seth Blackley stated that Q1 results were at the high end of expectations, the full-year outlook is reiterated, and the company sees a strong selling environment, with key operational focuses including scaling the oncology solution, favorable margin trends, AI-based automation, and disciplined capital allocation towards debt paydown[3](index=3&type=chunk) Q1 2025 Financial & Operational Highlights (in thousands, except PMPM/per case) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | **Financial Results** | | | | Revenue | $483,649 | $639,653 | | Net loss attributable to common shareholders | $(72,250) | $(25,225) | | Adjusted EBITDA | $36,860 | $54,097 | | Adjusted EBITDA Margin | 7.6% | 8.5% | | **Average Lives on Platform/Cases** | | | | Performance Suite | 6,486 | 7,050 | | Specialty Technology and Services Suite | 77,079 | 72,302 | | Average Unique Members | 40,628 | 39,888 | | **Average PMPM Fees/Revenue per Case** | | | | Performance Suite | $15.57 | $21.19 | | Specialty Technology and Services Suite | $0.36 | $0.41 | [New Revenue Agreements](index=2&type=section&id=New%20Revenue%20Agreements) Evolent secured five new revenue agreements, expanding surgical management, medical oncology, advanced imaging, and musculoskeletal services - The company secured five new revenue agreements, including two new health plans implementing surgical management solutions, expanded medical oncology Technology & Services with a national payer adding **800,000 Medicare Advantage lives**, and additions of advanced imaging and musculoskeletal services for existing partners covering over **100,000 Medicaid lives** and **100,000 Medicare Advantage lives** respectively[7](index=7&type=chunk) [Financial Results](index=2&type=section&id=Financial%20Results%20of%20Evolent%20Health%2C%20Inc%2E) Evolent's Q1 2025 financial results show a decrease in GAAP revenue and a widened net loss, alongside adjusted non-GAAP figures [Reported Results (GAAP)](index=2&type=section&id=Reported%20Results%20%28GAAP%29) Q1 2025 GAAP revenue decreased to **$483.6 million**, with net loss widening to **$72.3 million**, and cash at **$246.5 million** Q1 2025 GAAP Financial Results (in thousands, except per share data) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Revenue | $483,649 | $639,653 | | Cost of revenue | $381,178 | $535,547 | | Net loss attributable to common shareholders | $(72,250) | $(25,225) | | Basic and diluted loss per share | $(0.63) | $(0.22) | - Total cash and cash equivalents was **$246.5 million** as of March 31, 2025[5](index=5&type=chunk) [Adjusted Results (Non-GAAP)](index=2&type=section&id=Adjusted%20Results%20%28Non-GAAP%29) Q1 2025 Adjusted EBITDA was **$36.9 million** (7.6% margin), and Adjusted Income was **$7.4 million**, both down year-over-year Q1 2025 Adjusted Financial Results (in thousands, except per share data) | Metric | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Adjusted EBITDA | $36,860 | $54,097 | | Adjusted EBITDA margin | 7.6% | 8.5% | | Adjusted income attributable to common shareholders | $7,445 | $24,144 | | Adjusted basic income per common share | $0.06 | $0.21 | [Business Outlook](index=3&type=section&id=Business%20Outlook) Evolent provides Q2 and full-year 2025 guidance, reiterating revenue and Adjusted EBITDA expectations [Second Quarter 2025 Guidance](index=3&type=section&id=Second%20Quarter%202025%20Guidance) Evolent projects Q2 2025 revenue between **$440.0 million** and **$470.0 million**, with Adjusted EBITDA from **$33.0 million** to **$40.0 million** Q2 2025 Guidance (in millions) | Metric | Guidance Range (in millions) | | :--- | :--- | | Revenue | $440.0 - $470.0 | | Adjusted EBITDA | $33.0 - $40.0 | [Full Year 2025 Guidance](index=3&type=section&id=Full%20Year%202025%20Guidance) Full-year 2025 outlook reiterated: revenue **$2.06 billion-$2.11 billion**, Adjusted EBITDA **$135.0 million-$165.0 million**, and **$35 million** for capitalized software Full Year 2025 Guidance (Reiterated) | Metric | Guidance Range | | :--- | :--- | | Revenue | $2.06 billion - $2.11 billion | | Adjusted EBITDA | $135.0 million - $165.0 million | - The Company reiterated its expectation to deploy approximately **$35 million** in cash for capitalized software development during 2025[11](index=11&type=chunk) [Key Operating Metrics Definitions](index=4&type=section&id=Key%20Operating%20Metrics%20Definitions) This section defines key operating metrics like Revenue Agreements, Lives on Platform, PMPM Fee, Cases, and Average Unique Members - A "new revenue agreement" is defined as incremental revenue from new partner entities or additional sales to existing partners, including service, geographic, or line of business expansions[16](index=16&type=chunk) - "Lives on Platform" are calculated by summing monthly members for each service suite (Performance, Specialty Technology and Services, Administrative) and dividing by the number of months in the period[17](index=17&type=chunk) - "Average PMPM fee" is calculated by dividing the revenue from a specific suite by the corresponding "Lives on Platform" for the period, then by the number of months[18](index=18&type=chunk) - "Average Unique Members" are calculated by summing members across all solutions, but only counting members from the solution with the maximum number of members in cases where partners use multiple solutions, to avoid duplication[19](index=19&type=chunk) [Consolidated Financial Statements](index=5&type=section&id=Consolidated%20Financial%20Statements) This section presents Evolent's unaudited consolidated statements for operations, balance sheets, and cash flows for Q1 2025 [Consolidated Statements of Operations and Comprehensive Income (Loss)](index=5&type=section&id=Consolidated%20Statements%20of%20Operations%20and%20Comprehensive%20Income%20%28Loss%29) Q1 2025 operations show **$483.6 million** revenue, **$1.6 million** operating loss, and a **$72.3 million** net loss due to option exercise Consolidated Statements of Operations (unaudited, in thousands) | | For the Three Months Ended March 31, (in thousands) | | :--- | :--- | :--- | | | **2025** | **2024** | | Revenue | $483,649 | $639,653 | | Total operating expenses | $485,271 | $653,062 | | Operating income (loss) | $(1,622) | $(13,409) | | Loss on option exercise | $(52,348) | — | | Loss before income taxes | $(63,148) | $(16,715) | | Net loss attributable to common shareholders | $(72,250) | $(25,225) | | Loss per common share (Basic and diluted) | $(0.63) | $(0.22) | [Consolidated Balance Sheets](index=6&type=section&id=Consolidated%20Balance%20Sheets) As of March 31, 2025, total assets reached **$2.65 billion**, cash **$246.5 million**, liabilities **$1.52 billion**, and equity **$935.5 million** Consolidated Balance Sheet Highlights (in thousands) | | March 31, 2025 (in thousands) | December 31, 2024 (in thousands) | | :--- | :--- | :--- | | **Assets** | | | | Cash and cash equivalents | $246,547 | $104,203 | | Total current assets | $727,934 | $607,117 | | Goodwill | $1,137,320 | $1,137,320 | | Total assets | $2,653,451 | $2,544,411 | | **Liabilities & Equity** | | | | Total current liabilities | $739,097 | $715,501 | | Long-term debt, net | $647,532 | $490,520 | | Total liabilities | $1,524,702 | $1,352,979 | | Total shareholders' equity | $935,521 | $1,001,259 | [Consolidated Statements of Cash Flows](index=8&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Q1 2025 cash flows show **$4.6 million** from operations, **$13.1 million** used in investing, and **$107.9 million** from financing, boosting cash position Consolidated Statements of Cash Flows Highlights (unaudited, in thousands) | | For the Three Months Ended March 31, (in thousands) | | :--- | :--- | :--- | | | **2025** | **2024** | | Net cash provided by operating activities | $4,565 | $4,909 | | Net cash used in investing activities | $(13,093) | $(9,732) | | Net cash provided by financing activities | $107,854 | $14,882 | | Net increase in cash and cash equivalents | $99,349 | $10,021 | | Cash and cash equivalents at end-of-period | $277,845 | $233,478 | [Non-GAAP Financial Measures](index=10&type=section&id=Non-GAAP%20Financial%20Measures) This section defines and reconciles Evolent's non-GAAP financial measures to GAAP, providing a clearer view of operational performance [Definitions of Non-GAAP Measures](index=10&type=section&id=Definitions%20of%20Non-GAAP%20Measures) Evolent uses non-GAAP measures like Adjusted EBITDA and Adjusted Income, excluding non-operational costs for clearer performance evaluation - The company presents non-GAAP measures like Adjusted Cost of Revenue, Adjusted SG&A, Adjusted EBITDA, and Adjusted Income to help investors evaluate fundamental operational performance[28](index=28&type=chunk) - Adjustments to GAAP figures include removing costs not representative of day-to-day operations, such as stock-based compensation, severance, transaction costs, repositioning costs, and amortization of acquired intangible assets[29](index=29&type=chunk)[30](index=30&type=chunk)[31](index=31&type=chunk) [Reconciliation of Adjusted Results](index=12&type=section&id=Reconciliation%20of%20Adjusted%20Results) This section details the reconciliation of non-GAAP measures, including Adjusted Cost of Revenue, SG&A, EBITDA, and Income, to GAAP counterparts Reconciliation of Adjusted Cost of Revenue (in thousands) | | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Cost of revenue (GAAP) | $381,178 | $535,547 | | Less: Stock-based compensation | 657 | 1,005 | | **Adjusted cost of revenue (Non-GAAP)** | **$380,521** | **$534,542** | Reconciliation of Adjusted Selling, General and Administrative Expenses (in thousands) | | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | SG&A (GAAP) | $78,409 | $79,104 | | Less: Stock-based compensation | 10,424 | 17,781 | | Less: Severance costs | 1,014 | 380 | | Less: Transaction-related costs | 703 | — | | Less: Repositioning costs | — | 9,929 | | **Adjusted SG&A (Non-GAAP)** | **$66,268** | **$51,014** | Reconciliation of Adjusted EBITDA to Net Loss (in thousands) | | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net loss attributable to common shareholders (GAAP) | $(72,250) | $(25,225) | | Adjustments (Interest, Taxes, D&A, etc.) | 109,110 | 79,322 | | **Adjusted EBITDA (Non-GAAP)** | **$36,860** | **$54,097** | Reconciliation of Adjusted Income to Net Loss (in thousands) | | Q1 2025 (in thousands) | Q1 2024 (in thousands) | | :--- | :--- | :--- | | Net loss attributable to common shareholders (GAAP) | $(72,250) | $(25,225) | | Adjustments (Loss on option exercise, Purchase accounting, etc.) | 79,695 | 49,369 | | **Adjusted income attributable to common shareholders (Non-GAAP)** | **$7,445** | **$24,144** | [Forward-Looking Statements - Cautionary Language](index=15&type=section&id=FORWARD-LOOKING%20STATEMENTS%20-%20CAUTIONARY%20LANGUAGE) This section provides a safe harbor statement, outlining numerous risks and uncertainties that could impact Evolent's forward-looking statements - The report contains forward-looking statements concerning future results, performance, new partner additions, and business outlook, which are not historical facts and are subject to significant risks[48](index=48&type=chunk) - Key risks include dependence on a few large partners, the challenges of risk-sharing arrangements, ability to attract new partners, competition, and changes in healthcare regulation[49](index=49&type=chunk) - Additional risks highlighted include data security and privacy, protection of intellectual property, risks associated with AI use, reliance on third parties, debt service obligations, and potential stock price volatility[50](index=50&type=chunk) - The company states that the list of risks is not exhaustive and undertakes no obligation to publicly update any forward-looking statements[51](index=51&type=chunk)[52](index=52&type=chunk)