agilon health(US:AGL)2025-11-04 21:12Financial Performance - Total revenue for the nine months ended September 30, 2025, was $4.4 billion, a decrease of 4% from the same period in 2024[95] - Gross profit for the third quarter of 2025 was negative $68 million, compared to negative $64 million in the third quarter of 2024[97] - Net loss for the third quarter of 2025 was $110 million, an improvement from a net loss of $118 million in the third quarter of 2024[97] - Adjusted EBITDA loss for the nine months ended September 30, 2025, was $154 million, compared to a loss of $70 million in the same period of 2024[103] - Medical margin for the nine months ended September 30, 2025, was $18 million, down from $205 million in the same period of 2024[103] - Adjusted EBITDA for the nine months ended September 30, 2025, was $(154.3) million, compared to $(70.2) million for the same period in 2024, reflecting a significant increase in operating losses[148] Membership and Services - Medicare Advantage members totaled approximately 502,800 as of September 30, 2025, reflecting a 4% decrease from September 30, 2024[97] - The average Medicare Advantage membership during the third quarter of 2025 was 510,400[99] - Medical services revenue for the three months ended September 30, 2025 was $1,432,437, a decrease of $15,260 or 1% compared to the same period in 2024[126] - Medical services revenue for the nine months ended September 30, 2025 was $4,354,355, a decrease of $174,116 or 4% compared to the same period in 2024[128] - Medical services expense for the three months ended September 30, 2025 was $1,489,479, a decrease of $16,471 or 1% compared to the same period in 2024[129] - Medical services expense for the nine months ended September 30, 2025, increased by $12.7 million, or 0%, compared to the same period in 2024, primarily due to a 5% increase in average medical services expense per member, offset by a 4% decline in average membership[130] Operational Strategies - The company implemented a payor data pipeline in Q1 2025 to enhance visibility into member risk profiles and risk adjustment factors[100] - The company aims to empower primary care physicians to manage health outcomes and total healthcare needs of their attributed Medicare patients[92] - The business model focuses on forming risk-bearing entities within local geographies to manage total healthcare needs through global capitation arrangements[92] Expenses and Cash Flow - Total expenses for the three months ended September 30, 2025 were $1,566,595, compared to $1,584,440 for the same period in 2024[125] - General and administrative expenses for the three months ended September 30, 2025 were $56,198, compared to $63,123 for the same period in 2024[125] - General and administrative expenses for the nine months ended September 30, 2025, decreased by $30.7 million, or 15%, compared to the same period in 2024[134] - For the nine months ended September 30, 2025, the net cash used in operating activities was $85.2 million, an increase of $11.0 million compared to $74.2 million for the same period in 2024[159] - Net cash provided by investing activities was $66.0 million for the nine months ended September 30, 2025, a decrease of $50.2 million compared to $116.2 million for the same period in 2024[160] - Net cash used in financing activities was $3.0 million for the nine months ended September 30, 2025, compared to $2.6 million for the same period in 2024[161] Equity and Financing - Income from equity method investments for the three months ended September 30, 2025, increased by $11.1 million, or 542%, compared to the same period in 2024[136] - Income from equity method investments for the nine months ended September 30, 2025, increased by $13.5 million, or 77%, compared to the same period in 2024[137] - The company may require additional financing in the future to fund working capital and pay obligations, which could dilute existing stockholders' ownership[156] - The Credit Facility includes a $100.0 million senior secured term loan and a $100.0 million senior secured revolving credit facility, with a maturity date of February 18, 2026[162] Discontinued Operations - Total discontinued operations for the nine months ended September 30, 2025, amounted to $14.0 million, a $24.5 million increase compared to losses from discontinued operations in the same period in 2024[140] Interest Rates - A hypothetical 100 basis point change in interest rates would not have a material impact on the company's interest expense[171]