Evolent Announces Second Quarter 2025 Results

Core Insights - Evolent Health reported financial results for the second quarter of 2025, highlighting a significant net loss and a decrease in revenue compared to the previous year, but also an increase in adjusted EBITDA and a positive outlook for future growth [1][2][6][10]. Financial Performance - Revenue for the three months ended June 30, 2025, was $444.3 million, down from $647.1 million in the same period of 2024, representing a decrease of approximately 31.3% [6][10]. - The net loss attributable to common shareholders was $51.1 million, compared to a loss of $6.4 million in the prior year, resulting in a net loss margin of 11.5% [6][10]. - Adjusted EBITDA for the quarter was $37.5 million, with an adjusted EBITDA margin of 8.5%, up from 8.0% in the previous year [7][10]. Business Developments - Evolent signed four new revenue agreements in the second quarter, bringing the total for the year to date to 11, indicating strong demand for its services [3][4]. - The company is experiencing a rapidly accelerating pipeline for new business, with expectations to exceed historical growth rates in 2026 [2][10]. Guidance and Outlook - For the third quarter of 2025, Evolent expects revenue to be in the range of $460 million to $480 million and adjusted EBITDA between $34 million and $42 million [9][10]. - The full-year revenue outlook for 2025 has been revised to approximately $1.85 billion to $1.88 billion, with adjusted EBITDA expected to be in the range of $140 million to $165 million [10][11]. Operational Metrics - The average unique members on the platform increased to 40,201, compared to 39,856 in the previous year [6]. - The average PMPM fee for the Performance Suite decreased to $13.76 from $22.30 year-over-year, reflecting changes in service utilization [6][18].