Alignment Healthcare Reports Strong First Quarter 2025 Results; Exceeds High-End of Expectations On 4 Critical KPIs; Raises Midpoint of 2025 Guidance; Announces CFO Transition

Core Insights - Alignment Healthcare reported strong first-quarter financial results for 2025, showcasing significant growth in revenue and membership, driven by effective execution of its business model [3][6]. - The company achieved a revenue of $926.9 million, representing a 47.5% increase year-over-year, and grew its Medicare Advantage membership by 31.7% to approximately 217,500 members [6][21]. - The transition of Thomas Freeman from CFO to Strategic Advisor and the appointment of Jim Head as the new CFO is expected to support the company's long-term strategy and financial growth [5][9]. Financial Performance - First-quarter revenue reached $926.9 million, up 47.5% compared to the same period in 2024 [6][21]. - Adjusted gross profit was reported at $107.2 million, with a medical benefits ratio of 88.4% based on adjusted gross profit [6][21]. - Adjusted EBITDA for the quarter was $20.2 million, compared to a loss of $11.98 million in the same quarter of the previous year [6][12]. Future Outlook - For the second quarter of 2025, the company projects health plan membership to be between 220,000 and 222,000, with revenue expected to range from $950 million to $965 million [4]. - The fiscal year 2025 outlook has been raised, with expected year-end membership between 228,000 and 233,000 and revenue between $3.77 billion and $3.815 billion [4]. Leadership Transition - Thomas Freeman, after nearly a decade with the company, will transition to a Strategic Advisor role, while Jim Head, with over 30 years of experience in healthcare finance, will take over as CFO [5][9]. - The leadership change is seen as a strategic move to ensure continued financial growth and operational excellence [9][10]. Company Overview - Alignment Healthcare focuses on providing high-quality, low-cost care for Medicare Advantage members, leveraging technology and a member-first service model [16]. - The company aims to expand its national footprint while maintaining its core values of prioritizing senior care [16].