Evolent Announces Third Quarter 2025 Results

Core Insights - Evolent Health, Inc. reported strong financial results for Q3 2025, achieving revenue of $479.5 million, which is a decrease from $621.4 million in Q3 2024, but the company is optimistic about future growth with a preliminary revenue forecast of $2.5 billion for 2026 [2][9][14] - The company added two new customer agreements in the quarter, bringing the total for the year to thirteen, and expects to generate over $750 million in new annualized revenue in 2026 [3][4] - Evolent's Adjusted EBITDA for Q3 2025 was $39.0 million, up from $31.8 million in Q3 2024, indicating improved operational efficiency [2][11] Financial Performance - Revenue for the three months ended September 30, 2025, was $479.5 million, down from $621.4 million in the same period last year [9] - The net loss attributable to common shareholders was $26.9 million, an improvement from a loss of $31.2 million in Q3 2024, resulting in a net loss margin of 5.6% compared to 5.0% [9][10] - Adjusted EBITDA increased to $39.0 million with an adjusted EBITDA margin of 8.1%, up from 5.1% in the prior year [2][11] Customer and Market Developments - Evolent signed two new revenue agreements in Q3 2025, contributing to a total of thirteen new contracts for the year [3][4] - A new partnership with a large regional Blues plan will implement Evolent's Performance Suite for Oncology, covering over 650,000 members [5] - The company continues to experience strong demand for its complex specialty care solutions due to rising medical costs impacting health plans [2] Leadership Changes - Mario Ramos has been appointed as the new Chief Financial Officer effective January 1, 2026, bringing extensive experience from CVS Health and WellBe Senior Medical [6][7] - John Johnson will transition to the role of Chief Strategy Officer, and Emily Rafferty will become Executive Vice President, Customer Success [7] Business Outlook - For Q4 2025, Evolent expects revenue to be in the range of $462 million to $472 million, with adjusted EBITDA projected between $30 million and $40 million [13] - The full-year revenue forecast for 2025 is approximately $1.87 billion to $1.88 billion, with adjusted EBITDA expected to be between $144 million and $154 million [14][15]