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Sep 30
Alignment Healthcare Q3 2025 Earnings Report
Alignment Healthcare reported strong third quarter 2025 results, surpassing guidance across all key metrics.
Key Takeaways
Alignment Healthcare delivered an exceptional third quarter, exceeding its own guidance for membership, revenue, adjusted gross profit, and adjusted EBITDA. The company reported significant year-over-year revenue growth of 43.5% and achieved positive net income, reinforcing the strength and scalability of its care model.
Total revenue reached $993.7 million, marking a substantial 43.5% increase compared to the same period last year.
The company achieved a net income of $3.7 million, a significant improvement from a loss in the prior year.
Adjusted gross profit stood at $127.5 million, with an adjusted EBITDA of $32.4 million, both exceeding expectations.
Health plan membership grew by 25.9% year-over-year, reaching approximately 229,600 members.
Alignment Healthcare
Alignment Healthcare
Alignment Healthcare Revenue by Segment
Revenue by Segment
Earned Premiums Revenue
CapyFin.comOther Revenue
CapyFin.com Forward Guidance
Alignment Healthcare has raised its full-year outlook for 2025 across all key metrics, including membership, revenue, adjusted gross profit, and adjusted EBITDA, reflecting confidence in continued strong performance.
Positive Outlook
- Projected Q4 2025 revenue between $995 million and $1,010 million.
- Anticipated full-year 2025 revenue between $3,931 million and $3,946 million.
- Expected Q4 2025 adjusted gross profit between $104 million and $113 million.
- Forecasted full-year 2025 adjusted gross profit between $474 million and $483 million.
- Projected full-year 2025 adjusted EBITDA between $90 million and $98 million.
Challenges Ahead
- Q4 2025 adjusted EBITDA is projected to be negative, ranging from -$9 million to -$1 million.
- The company cannot provide estimated ranges for comparable GAAP measures without unreasonable efforts due to uncertainties.
- Uncertainty around items impacting GAAP measures, such as equity-based compensation and depreciation/amortization, are not within the company's control.
- Forward-looking statements are subject to risks and uncertainties that could cause actual results to differ materially.
- Potential federal reductions in Medicare Advantage funding could negatively impact the business.