Astrana Health 2025 Q3 Earnings Sharp Net Income Decline of 94.3%

Astrana Health reported a mixed Q3 2025 performance, with revenue doubling but net income collapsing. The results missed earnings expectations amid significant margin pressures.

Revenue

Astrana Health’s total revenue surged 100.0% to $949.48 million in Q3 2025, driven by robust growth across core segments. Capitation, net remained the largest contributor at $863.38 million, while risk pool settlements and incentives added $30.80 million. Management fee income and fee-for-service revenue reached $15.22 million and $40.08 million, respectively, supported by expanded service offerings.

Earnings/Net Income

The company’s earnings deteriorated sharply, with EPS plummeting 97.1% to $0.01 and net income shrinking to $1.08 million, a 94.3% decline year-over-year. This reflects operational challenges in maintaining profitability despite revenue growth.

Price Action

Post-earnings, Astrana Health’s stock experienced a steep correction, falling 12.21% in a single trading day, 32.01% over the full trading week, and 26.27% month-to-date. The market reaction underscored investor concerns over margin sustainability.

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CEO Commentary

Astrana Health’s CEO emphasized a “cautious but committed” outlook during the call, noting, “Our revenue growth validates the scalability of our capitation model, but we must address margin pressures to restore profitability.” The leadership prioritized cost optimization, strategic investments in risk pool incentives, and expanding management fee income to stabilize earnings.

Guidance

The company provided forward-looking guidance: $949.48 million in revenue and $1.08 million in net income for Q3 2025. While revenue targets align with the 100% growth trajectory, the EPS outlook remains constrained by operational costs.

Additional News

In the three weeks following the earnings release, Astrana Health announced a strategic partnership with a regional healthcare provider to expand its risk pool settlements division. Additionally, the board confirmed a leadership reshuffle, with the CFO transitioning to a senior advisory role. No dividend adjustments or buyback programs were disclosed.