Financial Data and Key Metrics Changes - Q3 revenue reached $479.5 million, exceeding expectations and at the top of the guidance range, with full-year revenue expected between $1.87 billion and $1.88 billion [3][18] - Adjusted EBITDA for Q3 was $39 million, representing a 23% year-over-year growth [8][19] - The company ended the quarter with $116.7 million in cash and equivalents, and net debt of $910 million [20][22] Business Line Data and Key Metrics Changes - The Performance Suite and Technology and Services Suite contributed to revenue growth, with new contracts expected to add over $550 million in 2026 revenue [4][6] - The specialty Performance Suite care margin was approximately 7%, consistent with year-to-date performance [19] Market Data and Key Metrics Changes - The company anticipates a contraction of approximately 3% in Medicare Advantage membership for 2026, with a significant decline expected in the exchange market [14][15] - Revenue from exchanges this year is around $360 million, split evenly between the Performance Suite and Technology and Services [34][35] Company Strategy and Development Direction - The company is focused on organic growth, margin expansion, and disciplined capital allocation, with a long-term goal to auto-approve over 80% of baseline authorization volume [8][9] - A strategic partnership with American Oncology Network aims to enhance provider alignment and improve cancer care without relying on utilization management [12][24] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capture market share despite a challenging operating environment, particularly in oncology [10][14] - The outlook for 2026 adjusted EBITDA is uncertain due to potential membership declines in key markets, but new contracts are expected to provide significant growth opportunities [15][17] Other Important Information - The company is transitioning its CFO role, with Mario Ramos set to join as the new CFO [24][25] - The divestiture of Evolent Care Partners is expected to close later this year, with proceeds used to reduce debt [9][22] Q&A Session Summary Question: Discussion on new contract wins and peak margins - Management confirmed that all new contracts are under the enhanced performance suite, with a reasonable mature margin target of around 10% [26][27][29] Question: Factors affecting 2026 EBITDA - Key factors include growth, cost structure efficiencies, and membership trends, with membership being the most uncertain variable [30][31][32] Question: MA growth assumptions for enrollment next year - Management noted that if current partners gain market share, it would positively impact revenue, particularly in the Technology and Services Suite [33] Question: Impact of HIX subsidies expiration - Management expressed confidence in pricing for 2026, with protections in contracts to mitigate acuity shifts [34][36] Question: Oncology trends and their progression - Oncology trends have remained stable throughout the year, with a slight increase in utilization noted in exchanges [37] Question: Pipeline pacing and go-live timing - The demand remains significant, and there is potential for new contracts to go live in 2026 [38] Question: Adversity in exchanges and membership impact - The benefits rush is primarily seen in cardiology, with a conservative approach taken for trend acceleration in the exchange line of business [40][41] Question: Product development and oncology navigation solution - The navigation solution is expected to expand into more markets, with a focus on improving care quality and affordability [46][48] Question: Revenue generation from the American Oncology partnership - The partnership aims to improve quality and reduce costs, with potential indirect revenue generation through payer interest [49]