agilon health(AGL) - 2025 Q2 - Quarterly Report

PART I. FINANCIAL INFORMATION Item 1. Financial Statements Presents agilon health's unaudited condensed consolidated financial statements and notes for periods ended June 30, 2025, and December 31, 2024 Condensed Consolidated Balance Sheets Condensed Consolidated Balance Sheets (in thousands) | Metric | June 30, 2025 (in thousands) | December 31, 2024 (in thousands) | | :-------------------------------- | :----------------------------- | :------------------------------- | | Total Assets | $1,712,895 | $1,733,983 | | Total Liabilities | $1,303,966 | $1,263,031 | | Total Stockholders' Equity (Deficit) | $408,929 | $470,952 | | Cash and Cash Equivalents | $171,416 | $188,231 | | Marketable Securities | $155,585 | $211,737 | | Medical Claims and Related Payables | $1,042,257 | $931,664 | - Total assets decreased by $21.1 million from December 31, 2024, to June 30, 2025, primarily due to decreases in cash and cash equivalents and marketable securities[10] - Total liabilities increased by $40.9 million, driven by a significant increase in medical claims and related payables[10] Condensed Consolidated Statements of Operations Condensed Consolidated Statements of Operations (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Total Revenues | $1,394,982 | $1,482,758 | $2,927,764 | $3,087,112 | | Total Expenses | $1,511,009 | $1,526,102 | $3,065,901 | $3,137,634 | | Income (Loss) from Operations | $(116,027) | $(43,344) | $(138,137) | $(50,522) | | Net Income (Loss) | $(104,370) | $(30,662) | $(92,258) | $(36,696) | | Net Income (Loss) per Common Share, Basic and Diluted (Continuing Operations) | $(0.25) | $(0.07) | $(0.25) | $(0.07) | | Net Income (Loss) per Common Share, Basic and Diluted (Discontinued Operations) | $0.00 | $0.00 | $0.03 | $(0.02) | - Total revenues decreased by 6% for the three months ended June 30, 2025, and by 5% for the six months ended June 30, 2025, compared to the respective prior periods[13] - Net loss significantly widened to $(104.4) million for the three months ended June 30, 2025, from $(30.7) million in the prior year, and to $(92.3) million for the six months ended June 30, 2025, from $(36.7) million in the prior year[13] Condensed Consolidated Statements of Comprehensive Income (Loss) Condensed Consolidated Statements of Comprehensive Income (Loss) (in thousands) | Metric (in thousands) | Three Months Ended June 30, 2025 | Three Months Ended June 30, 2024 | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :------------------------------- | :------------------------------- | :----------------------------- | :----------------------------- | | Net Income (Loss) | $(104,370) | $(30,662) | $(92,258) | $(36,696) | | Net Unrealized Gain (Loss) on Marketable Securities, net of tax | $210 | $325 | $822 | $(132) | | Foreign Currency Translation Adjustment | $34 | $(25) | $53 | $(17) | | Total Comprehensive Income (Loss) | $(104,126) | $(30,362) | $(91,383) | $(36,845) | - Total comprehensive loss increased significantly, mirroring the trend in net loss, but was partially offset by net unrealized gains on marketable securities in 2025[14] Condensed Consolidated Statements of Stockholders' Equity (Deficit) Condensed Consolidated Statements of Stockholders' Equity (Deficit) (in thousands) | Metric (in thousands) | June 30, 2025 | December 31, 2024 | | :-------------------------------- | :------------ | :---------------- | | Total Stockholders' Equity (Deficit) | $408,929 | $470,952 | | Accumulated Deficit | $(1,679,235) | $(1,586,977) | | Additional Paid-In Capital | $2,083,234 | $2,053,895 | | Common Stock Shares Outstanding | 414,283 | 412,194 | - Stockholders' equity decreased by $62.0 million from December 31, 2024, to June 30, 2025, primarily due to the net loss incurred during the period[10][17] - The accumulated deficit increased by $92.3 million for the six months ended June 30, 2025, reflecting the net loss[17] - Stock-based compensation expense contributed $32.1 million to additional paid-in capital for the six months ended June 30, 2025[17] Condensed Consolidated Statements of Cash Flows Condensed Consolidated Statements of Cash Flows (in thousands) | Cash Flow Activity (in thousands) | Six Months Ended June 30, 2025 | Six Months Ended June 30, 2024 | | :-------------------------------- | :----------------------------- | :----------------------------- | | Net Cash Provided by (Used in) Operating Activities | $(67,072) | $(66,493) | | Net Cash Provided by (Used in) Investing Activities | $47,369 | $69,655 | | Net Cash Provided by (Used in) Financing Activities | $(2,741) | $(1,155) | | Net Increase (Decrease) in Cash, Cash Equivalents and Restricted Cash | $(22,444) | $2,007 | | Cash, Cash Equivalents and Restricted Cash, End of Period | $171,416 | $116,336 | - Net cash used in operating activities remained relatively flat year-over-year, at $(67.1) million for the six months ended June 30, 2025[19] - Net cash provided by investing activities decreased by $22.3 million, primarily due to changes in marketable securities investments[19] - The company experienced a net decrease in cash, cash equivalents, and restricted cash of $(22.4) million for the six months ended June 30, 2025, compared to a net increase of $2.0 million in the prior year[19] Notes to the Condensed Consolidated Financial Statements NOTE 1. Business - agilon health provides capabilities, capital, and a business model for physician groups to create a Medicare-centric, globally capitated line of business[21] - As of June 30, 2025, the Company provided care to approximately 497,500 Medicare Advantage members[21] - The Company also participates in CMS ACO REACH and MSSP Models through equity method investments[21] NOTE 2. Summary of Significant Accounting Policies - Financial statements are prepared in accordance with U.S. GAAP, consolidating wholly-owned subsidiaries, joint ventures, and controlled VIEs[23] - Management's estimates for revenue recognition, medical services expense (including IBNR claims), and long-lived asset valuations are significant and may differ materially from actual results[24] - The Company operates as a single operating and reportable segment, focusing on its Medicare-centric, capitated line of business[30] - The 'One Big Beautiful Bill Act' signed on July 4, 2025, is being evaluated for its potential