Alignment Healthcare(US:ALHC)2025-10-30 20:11Financial Performance - Total revenues for Q3 2025 reached $993.7 million, a 43.5% increase from $692.4 million in Q3 2024[19] - Earned premiums for Q3 2025 were $983.7 million, up 43.8% from $684.5 million in Q3 2024[19] - Net income for Q3 2025 was $3.7 million, compared to a net loss of $26.4 million in Q3 2024[19] - Total revenues for the nine months ended September 30, 2025, reached $2,935,915, a 46.6% increase from $2,002,320 in 2024[37] - Net income for the nine months ended September 30, 2025, was $10,028, compared to a net loss of $97,007 for the same period in 2024[26] - Adjusted EBITDA for the three months ended September 30, 2025, was $32.4 million, a significant increase of 447.8% from $5.9 million in the same period of 2024[150] - Adjusted EBITDA for Q3 2025 was $32.4 million, a significant increase from $5.9 million in Q3 2024, while for the nine months ended September 30, 2025, it reached $98.5 million compared to a loss of $24,000 in the same period of 2024[162] Medical Expenses - Medical expenses for Q3 2025 were $868.0 million, a 41.6% increase from $613.4 million in Q3 2024[19] - Medical expenses for the nine months ended September 30, 2025, were $2,566,067, up from $1,788,446 in 2024, reflecting a 43.4% increase[37] - The medical benefits ratio (MBR) improved to 87.2% for the three months ended September 30, 2025, compared to 88.4% in the same period of 2024[150] Assets and Liabilities - Total assets increased to $1,102.6 million as of September 30, 2025, from $782.1 million at the end of 2024, representing a 41% growth[17] - Current liabilities rose to $611.1 million as of September 30, 2025, compared to $351.8 million at the end of 2024, a 73.7% increase[17] - Long-term debt remained relatively stable at $322.7 million as of September 30, 2025, compared to $321.4 million at the end of 2024[17] - The accumulated deficit decreased to $998.0 million as of September 30, 2025, from $1,008.3 million at the end of 2024[17] Cash Flow - Cash provided by operating activities for the nine months ended September 30, 2025, was $190,302, significantly higher than $43,481 in 2024[26] - The company reported a net increase in cash of $185,236 for the nine months ended September 30, 2025, compared to an increase of $137,745 in 2024[26] - Cash, cash equivalents, and restricted cash at the end of the period totaled $620,178, compared to $342,699 at the end of September 2024[27] - Cash and cash equivalents, along with other current investments, increased to $618.0 million as of September 30, 2025, compared to $340.3 million a year earlier[170] Membership Growth - Health Plan Membership increased to 229,600 as of September 30, 2025, representing a 30% compound annual growth rate across 45 markets and 5 states[139] - Health plan membership increased by 25.9% year-over-year, reaching 229,600 members as of September 30, 2025[150] Expenses - Selling, general, and administrative expenses for Q3 2025 were $110.0 million, up 21.0% from $90.9 million in Q3 2024[19] - Selling, general, and administrative expenses for Q3 2025 were $110.0 million, up 21.1% from $90.9 million in Q3 2024, and for the nine months, they increased to $317.6 million, an 18.0% rise from $269.2 million[172] - Interest expense decreased to $4.0 million for Q3 2025, down 42.0% from $6.9 million in Q3 2024, primarily due to a lower interest rate of 4.25% on convertible notes[174] Regulatory Compliance - The company aims to maintain a minimum Medical Loss Ratio of 85% as part of its compliance with CMS regulations[158] - The company was in compliance with minimum capital requirements as of September 30, 2025, as prescribed by various regulatory authorities[121] - As of September 30, 2025, the company's health plans were in compliance with minimum capital requirements set by regulatory authorities[182] Future Outlook - The company expects to discontinue participation in the ACO REACH model by December 31, 2025, with an immaterial impact on financial results[43] - The company anticipates increased corporate, general, and administrative expenses to support growth initiatives in the future[148] - The company expects to require additional capital resources to support future investments in operations and technology development[179] Other Financial Metrics - The company accrued a potential liability of $913,000 related to a tentative settlement of a class action lawsuit as of September 30, 2025[128] - The company recognized impairment charges of $634 related to goodwill for the nine months ended September 30, 2025, compared to $702 for the same period in 2024[90] - The company recorded a credit loss related to accounts receivable of $286 for the three months ended September 30, 2025, compared to $28 for the same period in 2024[87]