Evolent Announces Second Quarter 2025 Results
WASHINGTON, Aug. 7, 2025 /PRNewswire/ -- Evolent Health, Inc. (NYSE:EVH) ("Evolent" or the "Company"), a company that specializes in better health outcomes for people with complex conditions through proven solutions that make health care simpler and more affordable, today announced financial results for the three months ended June 30, 2025.
Seth Blackley, Co-Founder and Chief Executive Officer of Evolent stated, "Evolent exceeded our EBITDA targets for the second quarter and raised our profitability outlook for the full year. In addition, we continue to see a rapidly accelerating pipeline for new business and based on this acceleration we would expect to exceed our historical growth rates for 2026. The combination of these factors we believe demonstrates Evolent's critical role in the system where our solutions seek to simultaneously improve quality for members, reduce administrative burden for providers and manage affordability for the system. Finally, as we mark the one-year anniversary of launching of Auth Intelligence, we remain confident in achieving the near-term AI and automation targets exiting 2025 while also seeing a path to become a leader in the market on the use of clinical data exchange and AI allowing us to continue to innovate on how specialty care is managed."
Highlights from the quarter ended June 30, 2025 include (in thousands, except for average PMPM fees and revenue per case):
For the Three Months Ended June 30,
2025
2024
Financial Results:
Revenue
$ 444,328
$ 647,145
Net loss attributable to common shareholders of Evolent Health, Inc.
$ (51,090)
$ (6,383)
Net loss margin
(11.5) %
(1.0) %
Adjusted EBITDA
$ 37,547
$ 51,950
Adjusted EBITDA Margin
8.5 %
8.0 %
Average Lives on Platform/Cases
Performance Suite
6,490
6,901
Specialty Technology and Services Suite
77,019
71,701
Administrative Services
1,231
1,268
Cases
13
15
Average Unique Members
40,201
39,856
Average PMPM Fees/ Revenue per Case
Performance Suite
$ 13.76
$ 22.30
Specialty Technology and Services Suite
0.35
0.38
Administrative Services
15.13
15.97
Cases
2,969
2,849
The rising medical costs impacting health plans continue to drive robust demand for Evolent's complex specialty care solutions.
Evolent announced four new revenue agreements, bringing the year to date total to 11:
In the Performance Suite, an existing national partner is adding a new state in the mid-west for Oncology and Cardiology.
An existing partner in the north-east will add our cardiology, radiation oncology, and musculoskeletal solutions across multiple lines of business for more than 400,000 members.
A regional partner in New England will add musculoskeletal and cardiology services across multiple lines of business.
A national partner will add additional musculoskeletal services to a plan in the northeast.
Financial Results of Evolent Health, Inc.
In our earnings releases, prepared remarks, conference calls, slide presentations and webcasts, we may use or discuss financial measures not prepared in accordance with generally accepted accounting principles ("GAAP"). Definitions of the non-GAAP financial measures as well as reconciliations of non-GAAP financial measures to the most directly comparable GAAP financial measures are presented herein. See Non-GAAP Financial Measures for more information.
Reported Results
Evolent Health, Inc. reported the following results in accordance with GAAP (in thousands, except for per share data):
For the Three Months Ended June 30,
2025
2024
Revenue
$ 444,328
$ 647,145
Cost of revenue
$ 343,943
$ 540,302
Selling, general and administrative expenses
$ 75,209
$ 69,185
Net loss attributable to common shareholders of Evolent Health, Inc.
$ (51,090)
$ (6,383)
Net loss margin
(11.5) %
(1.0) %
Loss per share attributable to common shareholders of Evolent Health, Inc.:
Basic and diluted
$ (0.44)
$ (0.06)
Total cash and cash equivalents was $151.0 million as of June 30, 2025.
Adjusted Results
Evolent Health, Inc. reported the following adjusted results (in thousands, except for per share data):
For the Three Months Ended June 30,
2025
2024
Adjusted cost of revenue
$ 342,893
$ 539,095
Adjusted selling, general and administrative expenses
$ 63,888
$ 56,100
Adjusted EBITDA
$ 37,547
$ 51,950
Adjusted EBITDA margin
8.5 %
8.0 %
Adjusted income (loss) attributable to common shareholders
$ (11,013)
$ 21,065
Adjusted income (loss) per common share attributable to common shareholders:
Basic
$ (0.10)
$ 0.18
Business Outlook
The Company does not believe it can meaningfully reconcile guidance for non-GAAP Adjusted EBITDA to net income (loss) attributable to common shareholders of Evolent Health, Inc. because the Company cannot provide guidance for the more significant reconciling items between net income (loss) attributable to common shareholders of Evolent Health, Inc. and Adjusted EBITDA without unreasonable effort. This is due to the fact that future period non-GAAP guidance includes adjustments for items not indicative of our core operations, and as a result from changes to our business due to transactions and other events. Such items may, from time to time, include loss on repayment/extinguishment of debt; gain (loss) from equity method investees, loss on option exercise, change in fair value of contingent consideration, change in tax receivable agreement liability, other income (expense), gain (loss) on disposal of non-strategic assets, right-of-use asset impairments, losses on lease terminations, repositioning costs, stock-based compensation expense, severance costs, dividends and accretion on Series A Preferred Stock and transaction-related costs. Such adjustments may be affected by changes in ongoing assumptions, judgements, as well as nonrecurring, unusual or unanticipated charges, expenses or gains (losses) or other items that may not directly correlate to the underlying performance of our business operations. The exact amount of these adjustments is not currently determinable but may be significant.
Third Quarter 2025 Guidance
For the three months ended September 30, 2025, revenue is expected to be in the range of $460 million to $480 million. Adjusted EBITDA is expected to be in the range of $34 million to $42 million.
Full Year 2025 Guidance
Incorporating its year-to-date performance, the Company now expects adjusted EBITDA for the full year ending December 31, 2025 to be in the range of approximately $140 million to $165 million. The Company has also revised its revenue outlook for 2025 to reflect updated go-live timing for certain Performance Suite launches, with revenue now expected to be in the range of approximately $1.85 billion to $1.88 billion. The Company continues to experience strong customer retention and late-stage pipeline activity.
Additional Outlook Information
The Company reiterated its expectation to deploy approximately $35 million in cash for capitalized software development during 2025.
This "Business Outlook" section contains forward-looking statements, and actual results may differ materially. Factors that may cause actual results to differ materially from our current expectations in addition to those set forth above are set forth below in "Forward Looking Statements - Cautionary Language" and Evolent Health, Inc.'s filings with the Securities and Exchange Commission ("SEC").
Web and Conference Call Information
Evolent Health, Inc. will hold a conference call to discuss its financial performance and related matters this evening, August 7, 2025, at 5:00 p.m., Eastern Time. To listen to a live broadcast via the internet and view the accompanying materials, please visit the Company's Investor Relations website at http://ir.evolent.com. To participate by telephone, dial (855) 940-9467, or (412) 317-6034 for international callers, and ask to join the "Evolent Health call." Participants are advised to dial in at least fifteen minutes prior to the call to register. The call will be archived on the Company's website for one week and will be available beginning later this evening. Evolent invites all interested parties to attend the conference call.
About Evolent
Evolent specializes in better health outcomes for people with complex conditions through proven solutions that make health care simpler and more affordable. Evolent serves a national base of leading payers and providers and is consistently recognized as a top place to work in health care nationally. Learn more about how Evolent is changing the way health care is delivered by visiting evolent.com.
Contacts:
Revenue Agreements
Evolent reports the number of new revenue agreements signed for Performance Suite, Specialty Technology and Services Suite, Administrative Services and Case-based products. A new revenue agreement includes incremental revenue to the Company reflecting contracts for services to both new partner entities, corporations or health plans as well as additional sales to existing partners. New revenue agreements may include incremental services, geographic, or line of business expansions or a combination thereof. The conversion of Specialty Technology and Services Suite contracts to Performance Suite are also included in this definition. The Company does not count renewals for existing scope, growth of membership within an existing contract scope or transaction-related purchase agreements, if applicable, in this metric.
Lives on Platform and Per Member Per Month ("PMPM") Fee
Performance Suite Lives on Platform are calculated by summing monthly members covered for specialty care services for contracts not under ASO arrangements, plus members managed by Complex Care in capitation arrangements and divided by the number of months in the period. Specialty Technology and Services Suite Lives on Platform are calculated by summing monthly members covered for oncology, cardiology, musculoskeletal, advanced imaging and other diagnostic specialty care services for contracts under ASO arrangements divided by the number of months in the period. Administrative Services Lives on Platform are calculated by summing monthly members covered for administrative services implementation and core performance services divided by the number of months in the period. Cases are calculated by summing the number of individuals receiving services through our surgery management and advanced care planning programs in a given period. Members covered for more than one category are counted in each category.
Performance Suite Average PMPM fee is defined as revenue pertaining to our Performance Suite during the period reported divided by Performance Suite Lives on Platform for the period divided by the number of months in the period. Specialty Technology and Services Suite Average PMPM fee is defined as revenue pertaining to the Specialty Technology and Services Suite during the period reported divided by Specialty Technology and Services Suite Lives on Platform for the period divided by the number of months in the period. Administrative Services Average PMPM fee is defined as revenue pertaining to the Administrative Services during the period reported divided by the Administrative Services Lives on Platform for the period divided by the number of months in the period. Revenue per Case is calculated by the revenue pertaining to surgery management and advanced care planning programs divided by the number of cases for a given period.
Average Unique Members are calculated by summing members covered by our Performance Suite, Specialty Technology and Services Suite and Administrative Services. In cases where partners cross between multiple solutions, we only capture members from the solution with the maximum number of members.
Management uses Lives on Platform, PMPM fees, Cases, Revenue per Case and Average Unique Members because we believe that they provide insight into the unit economics of our services. We believe that these measures are also useful to investors because they allow further insight into the period over period operational performance.
EVOLENT HEALTH, INC.CONSOLIDATED STATEMENTS OF OPERATIONS AND COMPREHENSIVE INCOME (LOSS) (unaudited, in thousands, except per share data)
For the Three Months Ended June 30,
For the Six Months Ended June 30,
2025
2024
2025
2024
Revenue
$ 444,328
$ 647,145
$ 927,977
$ 1,286,798
Expenses
Cost of revenue
343,943
540,302
725,121
1,075,849
Selling, general and administrative expenses
75,209
69,185
153,618
148,289
Depreciation and amortization expenses
23,141
29,870
47,199
59,373
Loss on lease termination
—
—
1,906
—
Change in fair value of contingent consideration
3,206
—
2,926
8,908
Total operating expenses
445,499
639,357
930,770
1,292,419
Operating income (loss)
(1,171)
7,788
(2,793)
(5,621)
Interest income
1,084
1,370
2,358
3,920
Interest expense
(11,601)
(5,995)
(21,986)
(11,992)
Gain (loss) from equity method investees
197
(1,700)
178
(1,394)
Extinguishment of Series A Preferred Stock
(9,000)
—
(9,000)
—
Loss on option exercise
(196)
—
(52,544)
—
Change in tax receivables agreement liability
—
—
—
(173)
Other expense, net
(35)
(105)
(83)
(97)
Income (loss) before income taxes
(20,722)
1,358
(83,870)
(15,357)
Provision for (benefit from) income taxes
(825)
(238)
645
327
Income (loss) before preferred dividends and accretion of Series A Preferred Stock
(19,897)
1,596
(84,515)
(15,684)
Dividends and accretion of Series A Preferred Stock
(31,193)
(7,979)
(38,825)
(15,924)
Net loss attributable to common shareholders of Evolent Health, Inc.
$ (51,090)
$ (6,383)
$ (123,340)
$ (31,608)
Loss per common share
Basic and diluted
$ (0.44)
$ (0.06)
$ (1.07)
$ (0.28)
