Core Viewpoint - Agilon Health reported weaker-than-expected earnings for Q2 2025, with significant declines in revenue and profitability metrics, leading to the withdrawal of its full-year financial guidance due to ongoing challenges and a leadership transition [1][10]. Financial Performance - GAAP revenue for Q2 2025 was $1.39 billion, missing the consensus estimate of $1.47 billion by approximately 5.2% and representing a 6.0% decline year-over-year from $1.48 billion in Q2 2024 [1][5]. - GAAP earnings per share (EPS) were $(0.25), a significant drop of 257.1% compared to $(0.07) in Q2 2024 [2]. - Gross profit turned negative at $(52) million, down from a positive $32 million in Q2 2024 [6]. - Adjusted EBITDA was $(83) million, worsening from a $(3) million loss in the same quarter last year [6]. Membership and Market Dynamics - Total platform membership decreased by 5% to 614,000, with a 3% decline in Medicare Advantage members and a 12% drop in ACO REACH members [5]. - The decline in membership was anticipated due to market and payer exits, but the extent of the contraction was notable [5]. Operational Challenges - The company faced retroactive adjustments that negatively impacted financial results, including a $66 million charge related to prior period expense developments [7]. - A $37 million reduction in risk adjustment revenue for 2024 was identified due to new data revealing overestimations in prior risk-based contracts [7]. - General and administrative expenses decreased by approximately 19% year-over-year to $56.3 million, while medical services expenses increased by 5.2% [9]. Leadership and Strategic Focus - A leadership change occurred with CEO Steven Sell stepping down, and Board Chairman Ronald A. Williams taking over as Executive Chair on an interim basis [10]. - The company is focusing on enhancing its data platform technology, which now covers 72% of membership, to improve risk management and operational visibility [11]. Future Outlook - The company has suspended its full-year financial guidance due to uncertainties surrounding performance visibility and leadership transition [15]. - Management anticipates potential tailwinds beginning in 2026, including changes to Medicare's reimbursement model and new clinical initiatives [16]. - Cash flow, profitability, and membership growth are expected to remain under pressure until strategic efforts take effect [16].