Evolent Health 2025 Q3 Earnings Narrowed Losses as Revenue Beats Estimates

Evolent Health (EVH) reported Q3 2025 earnings on Nov 8, 2025, with revenue declining 22.8% year-over-year to $479.53 million, yet outperforming Wall Street’s $467.3 million estimate by 2.6%. The company narrowed its net loss to $20.86 million ($0.24 per share) from $23.14 million ($0.27 per share) in the prior year. It also revised Q4 guidance downward, projecting a 27.8% year-on-year sales decline.

Revenue

The Performance Suite led with $857.9 million in revenue, while the Specialty Technology and Services Suite contributed $257.5 million. Administrative Services generated $170.9 million, and Cases added $121.3 million. Medicaid accounted for 47% of total revenue, up from 35% in Q3 2024, as Medicare’s share fell to 27% from 38%.

Earnings/Net Income

Evolent’s adjusted EPS of $0.05 fell 52.5% below estimates, highlighting profitability challenges. However, adjusted EBITDA reached $38.96 million, reflecting an 8.1% margin and operational efficiency gains. The net loss improved by 9.8% year-over-year, though sustained losses over a decade underscore ongoing financial pressures.

Post-Earnings Price Action Review

Evolent’s stock surged 14.8% post-earnings due to the revenue beat, signaling short-term investor confidence. However, the EPS miss and downward Q4 guidance raised concerns. While 2026 revenue is forecasted to reach $2.5 billion, the company faces risks like high leverage ($910 million net debt) and industry headwinds, including exchange market volatility. AI-driven efficiency projects and new oncology contracts could offset these challenges, but investors must weigh near-term uncertainties against long-term growth potential.

Guidance

Evolent expects FY2025 revenue of $1.87–$1.88 billion and adjusted EBITDA of $144–$154 million. Q4 revenue is projected at $462–$472 million, with adjusted EBITDA of $30–$40 million.

Additional News

Evolent announced the sale of its primary care business, Evolent Care Partners, for $100 million, with proceeds to reduce debt. CEO Seth Blackley highlighted AI integration in workflows, boosting operational efficiency. CFO John Johnson will transition to Chief Strategy Officer, with Mario Ramos joining as CFO in January 2026.

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