Alignment Healthcare Q2 revenue beats estimates, raises annual outlook

Alignment Healthcare reported Q2 revenue of $1.02B, beating estimates of $960.5M. The company raised its annual outlook and expects Q3 revenue to be between $970M and $985M. Alignment Healthcare also announced a favorable court ruling and a raise in Arizona's HMO star rating.

Alignment Healthcare, Inc. (NASDAQ: ALHC) reported robust second-quarter (Q2) earnings, with revenue reaching $1.02 billion, significantly exceeding analyst estimates of $960.51 million [1]. The company's stock surged 23.08% in premarket trading on Thursday following the announcement [2].

The California-based healthcare provider reported a strong financial performance, with earnings of $0.07 per share, surpassing the analyst consensus estimate of -$0.07. Membership grew by 27.8% year-over-year (YoY) to approximately 223,700 members [1]. The company also reported net income of $15.7 million and adjusted EBITDA of $45.9 million for the quarter [3].

John Kao, founder and CEO of Alignment Healthcare, noted, "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" [1].

In addition to the strong Q2 performance, Alignment Healthcare raised its full-year 2025 outlook, projecting revenue between $3.89 billion and $3.91 billion, with membership expected to grow to between 229,000 and 234,000 by year-end [3]. The company also announced a favorable court ruling and a raise in Arizona's HMO star rating, further boosting its financial prospects.

For the third quarter, Alignment Healthcare forecasts revenue between $970 million and $985 million, with adjusted EBITDA expected to range from $5 million to $13 million [3]. The strong results reflect Alignment’s success in balancing growth with profitability in the competitive Medicare Advantage market, as the company continues to expand its footprint while maintaining cost discipline.

References:
[1] https://www.investing.com/news/earnings/alignment-healthcare-soars-185-as-q2-profit-beats-expectations-93CH-4161382
[2] https://www.benzinga.com/markets/equities/25/07/46749852/alignment-healthcare-surges-over-23-after-strong-q2-performance
[3] https://ir.alignmenthealth.com/news-releases/news-release-details/alignment-healthcare-reports-second-quarter-2025-results-raises