Agilon Health Q1 2025 Earnings Call Transcript: Key Takeaways

Agilon Health reported Q1 2025 results, with CEO Steve Sell and CFO Jeff Schwaneke discussing key points. The company's Q1 2025 Earnings Call Transcript is available. Participants include financial analysts from various firms. The call will cover Agilon Health's financial performance and future outlook.

Agilon Health, Inc. (NYSE: AGL) reported its first-quarter 2025 results, showing a decrease in total revenue and a significant drop in gross profit compared to the same period in 2024. The company's earnings call, hosted on May 6, 2025, provided insights into the financial performance and future outlook, with CEO Steven Sell and CFO Jeff Schwaneke addressing key points.

The company reported total revenues of $1.53 billion in Q1 2025, a 4% decrease from the $1.60 billion recorded in Q1 2024 [1]. Gross profit decreased by 32% to $51 million, while net income improved to $12 million, up from a net loss of $6 million in the prior year. The medical margin, which measures the difference between revenue and medical costs, was $128 million, down from $157 million in Q1 2024. Adjusted EBITDA, a measure of operating performance, decreased by 29% to $21 million [1].

Agilon Health's Medicare Advantage membership decreased to 491,000, down 6% from 523,000 in Q1 2024. Total members on the agilon platform decreased to 605,000, a 7% decrease from 654,000 in the prior year. The company attributed the decrease in membership to previously disclosed market exits [1].

The company's balance sheet as of March 31, 2025, included cash, cash equivalents, and marketable securities of $369 million and total debt of $35 million. Agilon Health also reported $25 million in cash associated with its unconsolidated ACO model entities [1].

Agilon Health reaffirmed its full-year 2025 earnings guidance, with expectations for Medicare Advantage membership of 485,000 to 515,000, ACO model members of 105,000 to 115,000, and total members live on the platform of 590,000 to 630,000. Total revenues are expected to range from $5.85 billion to $6.02 billion, with a medical margin of $275 million to $325 million and adjusted EBITDA of ($35) million to ($55) million [1].

The earnings call also discussed the impact of market exits, the company's clinical programs, and the elevated medical cost trend experienced in 2024. Agilon Health expects the medical cost trend to continue in 2025, with an estimated gross cost trend of 6.3% and a net trend of 5.3% for year 2+ markets [1].

The company's forward-looking statements reflect the current expectations and views about future events and are subject to risks and uncertainties, including the company's history of net losses and the expectation that expenses will increase in the future. Agilon Health's ability to maintain and secure contracts with Medicare and other payors, as well as its ability to execute its growth initiatives, are also key risks [1].

References:
[1] https://www.businesswire.com/news/home/20250506680888/en/agilon-health-Reports-First-Quarter-2025-Results