Alignment Healthcare(ALHC) - 2025 Q3 - Quarterly Results

Financial Performance - Third quarter 2025 revenue reached $993.7 million, representing a 43.5% increase year-over-year[6] - Adjusted gross profit for the third quarter was $127.5 million, with an adjusted EBITDA of $32.4 million[7] - For the fourth quarter of 2025, the company projects revenue between $995 million and $1,010 million[4] - The adjusted EBITDA guidance for the fourth quarter is expected to range from $(9) million to $(1) million[4] - Total revenues for the three months ended September 30, 2025, were $993.7 million, a 43.5% increase from $692.4 million in the same period of 2024[17] - Earned premiums for the nine months ended September 30, 2025, reached $2.91 billion, compared to $1.98 billion for the same period in 2024, reflecting a 46.8% growth[17] - Net income for the three months ended September 30, 2025, was $3.7 million, a significant recovery from a net loss of $26.4 million in the same period of 2024[17] - Basic net income per share for the three months ended September 30, 2025, was $0.02, compared to a loss of $0.14 per share in 2024[17] Membership and Ratings - Health plan membership at the end of the quarter was approximately 229,600, up 25.9% year-over-year[7] - The company has 100% of its members in plans rated 4 stars or higher for the second consecutive year, including two 5-star contracts in Nevada and North Carolina[6] Assets and Equity - The total assets as of September 30, 2025, were $1,102.6 million, compared to $782.1 million as of December 31, 2024[14] - Total stockholders' equity increased to $161.9 million as of September 30, 2025, from $100.9 million at the end of 2024[15] - Cash and cash equivalents at the end of the period on September 30, 2025, totaled $620.2 million, an increase from $342.7 million at the end of September 30, 2024[20] Medical Expenses - Medical expenses payable increased to $528.8 million from $289.8 million year-over-year[15] - Medical expenses for the three months ended September 30, 2025, were $868.0 million, up from $613.4 million in 2024, representing a 41.6% increase[17] - The company reported a Medical Benefits Ratio (MBR) calculated by dividing total medical expenses by total revenues, although specific MBR figures were not provided[25] Cash Flow and Operations - The company experienced a net cash provided by operating activities of $190.3 million for the nine months ended September 30, 2025, compared to $43.5 million in 2024[19] - Adjusted EBITDA is used by the company to assess operating performance, although specific figures for this measure were not disclosed in the provided content[21] - The company plans to continue evaluating acquisition opportunities as part of its growth strategy, leveraging non-GAAP financial measures for internal assessments[21]