agilon health(AGL)2025-05-06 20:12Financial Performance - Total revenue for the first quarter of 2025 was $1.5 billion, a decrease of 4% from $1.6 billion in the first quarter of 2024[90]. - Gross profit fell to $51 million in the first quarter of 2025, down 32% from $75 million in the first quarter of 2024[90]. - Medical margin decreased by 19% to $128 million compared to $157 million in the first quarter of 2024[90]. - Net income for the first quarter of 2025 was $12 million, a significant improvement from a net loss of $6 million in the first quarter of 2024, representing a 301% increase[90]. - Adjusted EBITDA for the first quarter of 2025 was $21 million, down 29% from $29 million in the first quarter of 2024[90]. - Medical services revenue for Q1 2025 was $1,529,879, a decrease of $71,316 or 4% from $1,601,195 in Q1 2024, primarily due to a 6% decline in average membership[115]. - Medical services expense decreased to $1,401,867 in Q1 2025, down $41,975 or 3% from $1,443,842 in Q1 2024, reflecting the same decline in average membership[118]. - Other medical expenses decreased by $5,231 or 6% to $80,193 in Q1 2025 compared to $85,424 in Q1 2024, with partner physician incentive expense dropping to $44.0 million from $49.8 million[119]. - General and administrative expenses fell by $10,466 or 14% to $65,956 in Q1 2025 from $76,422 in Q1 2024, with costs related to geography entry decreasing significantly[120]. - Adjusted EBITDA for Q1 2025 was $20.6 million, compared to $29.1 million in Q1 2024, reflecting a decrease of 29%[132]. - Gross profit for Q1 2025 was $50.7 million, down from $75.1 million in Q1 2024, representing a decline of 32.5%[130]. - Medical margin for Q1 2025 was $128.0 million, compared to $157.4 million in Q1 2024, indicating a decrease of 18.6%[130]. Membership and Services - Medicare Advantage members decreased by 6% to approximately 490,700 as of March 31, 2025, compared to 522,800 in the same period of 2024[90]. - Medical services expense as a percentage of total revenues increased to 91% in Q1 2025 from 90% in Q1 2024[116]. - General and administrative expenses represented 4% of total revenues in Q1 2025, down from 5% in Q1 2024[116]. Cash Flow and Investments - Net cash used in operating activities was $32.0 million for Q1 2025, an improvement from $47.8 million in Q1 2024, showing a reduction of $15.8 million[143]. - Cash and cash equivalents as of March 31, 2025, totaled $138.6 million, with investments in marketable securities amounting to $230.1 million[134]. - The company expects to continue incurring operating losses and generating negative cash flows due to ongoing investments in business expansion[135]. - Net cash used in investing activities was $23.1 million for Q1 2025, compared to net cash provided of $51.4 million in Q1 2024, a change of $74.5 million[144]. - As of March 31, 2025, the company held cash, cash equivalents, restricted cash and equivalents, and marketable securities totaling $368.8 million, compared to $405.6 million as of December 31, 2024[155]. Strategic Focus - The company aims to empower primary care physicians through a risk-bearing entity model to manage total healthcare needs[84]. - The company is focused on expanding its network of physician partners and enhancing its platform capabilities to drive growth[85]. - The company anticipates challenges in maintaining and securing contracts with Medicare Advantage payors on favorable terms[81]. - The company expects medical margin to increase in absolute dollars as the platform matures, despite potential fluctuations in PMPM due to new member additions[125]. Other Financial Metrics - Income from equity method investments increased by $6,988 or 123% to $12,672 in Q1 2025, driven by higher medical margins from CMS ACO Models investments[121]. - Other income (expense), net rose by $3,369 or 57% to $9,261 in Q1 2025, primarily due to $4.2 million of income related to services rendered to CMS ACO Models[122]. - Total discontinued operations reported a gain of $14,000 in Q1 2025, a significant improvement of $23,281 or 251% compared to a loss of $9,281 in Q1 2024[123]. - The Credit Facility includes a $100.0 million senior secured term loan and a $100.0 million senior secured revolving credit facility, maturing on February 18, 2026[146]. - A hypothetical 100 basis point change in interest rates would not have a material impact on the company's interest expense[154]. - A hypothetical 100 basis point change in interest rates would not have a material impact on the fair value of the company's marketable securities[155].