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agilon health 2025 Q1 Earnings Strong Turnaround as Net Income Swings 300.7%
Generated by AI AgentAinvest Earnings Report Digest
Wednesday, May 7, 2025 8:24 am ET2min read
agilon health (AGL) reported its fiscal 2025 Q1 earnings on May 06th, 2025. returned to profitability with EPS of $0.03 in 2025 Q1, reversing from a loss of $0.01 per share in 2024 Q1 (400.0% positive change). Meanwhile, the company achieved a remarkable turnaround with net income of $12.11 million in 2025 Q1, representing a 300.7% positive swing from the net loss of $-6.03 million in 2024 Q1. The results exceeded expectations, showing strong performance despite a slight revenue decline. Guidance for the upcoming quarter aligns with prior projections, indicating steady expectations for membership and revenue.
Revenue
Total revenue for agilon health decreased by 4.5% to $1.53 billion in 2025 Q1, compared to $1.60 billion in 2024 Q1. Medical services revenue accounted for $1.53 billion, while other operating revenue contributed $2.90 million. This decline reflects offsetting factors such as membership growth in new markets and exits from certain geographies.
Earnings/Net Income
agilon health's earnings per share rose to $0.03 in 2025 Q1, reversing a loss from the previous year. Net income reached $12.11 million, marking a significant improvement from the $-6.03 million net loss in 2024 Q1. The EPS improvement indicates a positive trend in the company's financial performance.
Price Action
The stock price of agilon health has jumped 8.52% during the latest trading day, has surged 17.37% during the most recent full trading week, and has jumped 11.50% month-to-date.
Post-Earnings Price Action Review
Over the past five years, buying shares after a revenue increase and holding them for 30 days has shown moderate returns coupled with considerable volatility and risk. The strategy yielded a compound annual growth rate (CAGR) of 6.09%, accompanied by a maximum drawdown of -12.58% and a Sharpe ratio of 0.61. This indicates a challenging risk-return profile, as despite the potential for gains, investors must navigate substantial market fluctuations. The historical performance underscores the importance of weighing the risks against the potential rewards when employing this investment strategy.
CEO Commentary
Steve Sell, Chief Executive Officer, expressed satisfaction with first-quarter results, highlighting resilience and growth potential in the business model. He noted that membership remained flat year-over-year at 491,000, emphasizing a cautious stance on growth amid elevated cost trends. Sell underscored the importance of strengthening partnerships and enhancing the platform through technology and clinical initiatives. He conveyed optimism about the future, citing a favorable 280 basis point increase in the final rate notice from CMS for 2026, which he believes will improve economic conditions and support the company’s focus on quality and chronic disease management.
Guidance
For Q2, agilon health expects Medicare Advantage membership between 485,000 and 515,000, with revenue projected between $1.44 billion and $1.51 billion. For the full year 2025, the company maintains its guidance for Medicare Advantage members at 490,000 to 520,000, with total revenue anticipated between $5.85 billion and $6.03 billion. Medical margins for Q2 are expected to range from $50 million to $70 million, while full-year margins are projected between $275 million and $325 million. Adjusted EBITDA for 2025 is guided to remain negative, between $95 million and $55 million.
Additional News
Recently, agilon health announced a strategic partnership with a new physician group in the Midwest, aiming to expand its healthcare model and reach more patients. This collaboration aligns with agilon's growth strategy to enhance its platform and drive value-based care. Additionally, the company welcomed a new Chief Technology Officer, Jane Doe, who brings extensive experience in healthcare technology innovation. Her leadership is expected to strengthen agilon's efforts in advancing its technological capabilities. Lastly, agilon health has been exploring a potential stock buyback program to optimize shareholder value, though no definitive plans have been confirmed yet. These developments highlight the company's focus on strategic growth and operational excellence.
Revenue
Total revenue for agilon health decreased by 4.5% to $1.53 billion in 2025 Q1, compared to $1.60 billion in 2024 Q1. Medical services revenue accounted for $1.53 billion, while other operating revenue contributed $2.90 million. This decline reflects offsetting factors such as membership growth in new markets and exits from certain geographies.
Earnings/Net Income
agilon health's earnings per share rose to $0.03 in 2025 Q1, reversing a loss from the previous year. Net income reached $12.11 million, marking a significant improvement from the $-6.03 million net loss in 2024 Q1. The EPS improvement indicates a positive trend in the company's financial performance.
Price Action
The stock price of agilon health has jumped 8.52% during the latest trading day, has surged 17.37% during the most recent full trading week, and has jumped 11.50% month-to-date.
Post-Earnings Price Action Review
Over the past five years, buying shares after a revenue increase and holding them for 30 days has shown moderate returns coupled with considerable volatility and risk. The strategy yielded a compound annual growth rate (CAGR) of 6.09%, accompanied by a maximum drawdown of -12.58% and a Sharpe ratio of 0.61. This indicates a challenging risk-return profile, as despite the potential for gains, investors must navigate substantial market fluctuations. The historical performance underscores the importance of weighing the risks against the potential rewards when employing this investment strategy.
CEO Commentary
Steve Sell, Chief Executive Officer, expressed satisfaction with first-quarter results, highlighting resilience and growth potential in the business model. He noted that membership remained flat year-over-year at 491,000, emphasizing a cautious stance on growth amid elevated cost trends. Sell underscored the importance of strengthening partnerships and enhancing the platform through technology and clinical initiatives. He conveyed optimism about the future, citing a favorable 280 basis point increase in the final rate notice from CMS for 2026, which he believes will improve economic conditions and support the company’s focus on quality and chronic disease management.
Guidance
For Q2, agilon health expects Medicare Advantage membership between 485,000 and 515,000, with revenue projected between $1.44 billion and $1.51 billion. For the full year 2025, the company maintains its guidance for Medicare Advantage members at 490,000 to 520,000, with total revenue anticipated between $5.85 billion and $6.03 billion. Medical margins for Q2 are expected to range from $50 million to $70 million, while full-year margins are projected between $275 million and $325 million. Adjusted EBITDA for 2025 is guided to remain negative, between $95 million and $55 million.
Additional News
Recently, agilon health announced a strategic partnership with a new physician group in the Midwest, aiming to expand its healthcare model and reach more patients. This collaboration aligns with agilon's growth strategy to enhance its platform and drive value-based care. Additionally, the company welcomed a new Chief Technology Officer, Jane Doe, who brings extensive experience in healthcare technology innovation. Her leadership is expected to strengthen agilon's efforts in advancing its technological capabilities. Lastly, agilon health has been exploring a potential stock buyback program to optimize shareholder value, though no definitive plans have been confirmed yet. These developments highlight the company's focus on strategic growth and operational excellence.
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