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Mar 31
Alignment Healthcare Q1 2025 Earnings Report
Reported strong first quarter 2025 results, exceeding expectations on key metrics and raising full-year guidance.
Key Takeaways
Alignment Healthcare delivered strong first quarter 2025 financial results, exceeding the high end of expectations for membership, revenue, adjusted gross profit, and adjusted EBITDA. Total revenue grew 47.5% year over year to $926.9 million, driven by a 31.7% increase in Medicare Advantage membership. The company reported positive adjusted EBITDA and raised the midpoint of its full-year 2025 guidance ranges for key financial and operational metrics, supported by strong clinical performance and enrollment growth.
Delivered Q1 revenue of $926.9 million, up 47.5% year over year.
Grew Medicare Advantage membership by 31.7% year over year to approximately 217,500 members.
Exceeded the high-end of Q1 guidance on membership, revenue, adjusted gross profit, and adjusted EBITDA.
Raised the midpoint of outlook ranges for 2025 year-end membership, revenue, adjusted gross profit, and adjusted EBITDA.
Alignment Healthcare
Alignment Healthcare
Alignment Healthcare Revenue by Segment
Revenue by Segment
Earned Premiums Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
For the second quarter ending June 30, 2025, the company expects Health Plan Membership between 220,000 and 222,000, Revenue between $950 million and $965 million, Adjusted Gross Profit between $105 million and $113 million, and Adjusted EBITDA between $10 million and $18 million. For the full year ending December 31, 2025, the company expects Health Plan Membership between 228,000 and 233,000, Revenue between $3,770 million and $3,815 million, Adjusted Gross Profit between $420 million and $445 million, and Adjusted EBITDA between $38 million and $60 million.
Positive Outlook
- Raised the midpoint of outlook ranges for 2025 year-end membership.
- Raised the midpoint of outlook ranges for 2025 year-end revenue.
- Raised the midpoint of outlook ranges for 2025 year-end adjusted gross profit.
- Raised the midpoint of outlook ranges for 2025 year-end adjusted EBITDA.
- Guidance supported by strong first-quarter clinical performance and enrollment growth momentum.
Challenges Ahead
- Ability to attract new members and enter new markets, including the need for certain governmental approvals.
- Ability to maintain a high rating for plans on the Five Star Quality Rating System.
- Ability to develop and maintain satisfactory relationships with care providers.
- Risks associated with being a government contractor, including potential federal reductions in MA funding.
- Changes in laws and regulations applicable to the business model.