Alignment Healthcare 2025 Q2 Earnings Strong Performance as Net Income Surges 165.2%

Alignment Healthcare (ALHC) reported its fiscal 2025 Q2 earnings on Jul 30th, 2025. The company delivered impressive financial results, surpassing expectations with a significant turnaround in net income, achieving profitability after six years of losses. Alignment Healthcare raised its full-year outlook across all key metrics, reflecting confidence in sustained growth. For the third quarter of 2025, guidance indicates revenue between $970 million and $985 million, and health plan membership between 225,000 and 227,000, indicating a positive trajectory for the company.

Revenue

The total revenue of Alignment Healthcare increased by 49.3% to $1.01 billion in 2025 Q2, up from $674.09 million in 2024 Q2.

Earnings/Net Income

Alignment Healthcare returned to profitability with EPS of $0.08 in 2025 Q2, reversing from a loss of $0.13 per share in 2024 Q2 (161.5% positive change). Meanwhile, the company achieved a remarkable turnaround with net income of $15.65 million in 2025 Q2, representing a 165.2% positive swing from the net loss of $-24 million in 2024 Q2. The earnings per share reflect a strong performance amid ongoing financial headwinds.

Price Action

The stock price of Alignment Healthcare has climbed 7.44% during the latest trading day, has climbed 4.84% during the most recent full trading week, and has dropped 6.14% month-to-date.

Post Earnings Price Action Review

The strategy of buying Alignment Healthcare (ALHC) shares after a revenue raise quarter-over-quarter on the financial report release date and holding for 30 days resulted in significant underperformance. Despite not experiencing any substantial losses, the strategy yielded a negative total return of -41.30% over the past three years, with a compounded annual growth rate of -11.61%. The maximum drawdown remained at 0.00%, showcasing stability but failing to capture gains. Consequently, the Sharpe ratio was calculated at -0.18, indicating unfavorable risk-adjusted returns, while volatility stood at a high 64.55%. This strategy highlights the importance of evaluating market conditions and performance metrics before employing a buy-and-hold approach.

CEO Commentary

“In today's Medicare Advantage environment, Alignment Healthcare's second quarter performance proves that strong financial results and high-quality care can go hand in hand – with the right model,” said John Kao, CEO. He highlighted that the company has spent years building a new paradigm for senior care, emphasizing clinical excellence, affordability, and member experience. Kao stated that profitability is a key milestone, but the focus remains on putting seniors first, ensuring real-time visibility of their health, and making care management a core competency. He expressed confidence in leading the Medicare Advantage space with their innovative approach.

Guidance

For the third quarter of 2025, Alignment Healthcare expects health plan membership between 225,000 and 227,000, with revenue projected between $970 million and $985 million. Adjusted gross profit is anticipated to be in the range of $106 million to $114 million, while adjusted EBITDA is forecasted between $5 million and $13 million. For the full year, the company raises its expectations for membership to between 229,000 and 234,000, with total revenue between $3.885 billion and $3.910 billion, and adjusted gross profit projected at $452 million to $469 million.

Additional News

Alignment Healthcare recently secured a significant legal victory, elevating its Arizona HMO 2025 star rating from 3.5 to 4 stars following a court ruling. This upgrade qualifies the company for CMS bonus payments, enhancing member benefits and services. Furthermore, founder and CEO John Kao was elected to the AHIP board of directors, reinforcing Alignment's leadership in healthcare coverage. The company was also named to the 2025 Fortune 1000 list, reflecting its rapid growth and financial momentum, driven by innovative senior-focused care models. These developments underscore Alignment Healthcare’s commitment to excellence in senior care.