agilon health(US:AGL)2025-11-04 21:09Financial Performance - Total revenue for Q3 2025 was $1.44 billion, a decrease of 1% compared to $1.45 billion in Q3 2024[3] - The net loss for Q3 2025 was $110 million, an improvement of 6% compared to a net loss of $118 million in Q3 2024[4] - Adjusted EBITDA loss was $91 million in Q3 2025, compared to a loss of $96 million in Q3 2024, indicating a 5% improvement[4] - Total revenues for the three months ended September 30, 2025, were $1,435,321, a decrease of 1.1% from $1,450,932 in the same period of 2024[16] - Total expenses for the three months ended September 30, 2025, were $1,566,595, slightly lower than $1,584,440 in 2024, resulting in an operating loss of $131,274[16] - The net loss attributable to common shares for the nine months ended September 30, 2025, was $202,465, compared to a loss of $154,361 in 2024, indicating a 31.1% increase in losses[16] - Adjusted EBITDA for the three months ended September 30, 2025, was $(91,492), compared to $(96,469) in the same period of 2024, showing a slight improvement[26] - The company reported a gross profit (loss) of $(67,646) for the three months ended September 30, 2025, compared to $(64,167) in 2024, indicating continued pressure on profitability[20] Membership and Operations - Total members on the agilon platform decreased to 618,000, including 503,000 Medicare Advantage members, reflecting a 6% year-over-year decline[4] - The company anticipates a total of 616,000 to 621,000 members on its platform by the end of 2025[8] - The company expects the medical margin to increase in absolute dollars as the platform matures, despite potential fluctuations in medical margin per member per month (PMPM) due to new member dilution[32] Medical Margin and Revenue - The company reported a medical margin of negative $57 million in Q3 2025, slightly improved from negative $58 million in Q3 2024[4] - Medical services revenue for the nine months ended September 30, 2025, was $4,354,355, down from $4,528,471 in 2024, reflecting a decline of 3.8%[16] - Medical margin for the nine months ended September 30, 2025, was $17,764, a significant decrease from $204,619 in 2024, reflecting challenges in cost management[25] - The medical margin for the three months ended September 30, 2025, was $(57,042), while the medical margin for the nine months ended was $17,764[30] Cash and Liquidity - Cash and cash equivalents, along with marketable securities, totaled $311 million as of September 30, 2025[6] - Cash, cash equivalents, and restricted cash at the end of the period were $171,684 for September 30, 2025, compared to $153,790 in 2024, showing an increase in liquidity[18] - Cash flows from operating activities for the nine months ended September 30, 2025, resulted in a net cash used of $85,226, compared to $74,196 in 2024, indicating increased cash outflow[18] Cost Management and Future Guidance - The company expects to reduce operating costs by $30 million in 2026 as part of its transformation initiatives[2] - Fiscal year 2025 guidance projects total revenues between $5.81 billion and $5.83 billion, with a medical margin expected to range from a loss of $5 million to a profit of $15 million[8] Accounting and Financial Metrics - Adjusted EBITDA is defined as net income adjusted for various expenses, providing insight into ongoing operating performance[33] - The company emphasizes that Medical Margin and Adjusted EBITDA are important non-GAAP measures for evaluating financial performance and trends[35] - The gross profit (loss) is the most directly comparable GAAP measure to Medical Margin, while net income (loss) relates to Adjusted EBITDA[34] - The company notes that certain operations are not consolidated due to lack of control over the entities' board of directors, impacting revenue recognition[30] - The company believes that the metrics provided enhance understanding of past performance and future prospects, aiding in financial decision-making[35]