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Sep 30, 2025
agilon health Q3 2025 Earnings Report
agilon health reported its third quarter 2025 results, showing progress on transformation initiatives and re-establishing its full-year outlook.
Key Takeaways
agilon health reported a mixed third quarter in 2025, with total revenue slightly decreasing by 1% year-over-year to $1.44 billion. The company continued to face challenges from lower-than-expected risk adjustment revenue and market exits, which impacted membership numbers. Despite these headwinds, agilon health showed improvements in net loss and Adjusted EBITDA loss compared to the prior year, indicating some success in its transformation initiatives and operating cost reductions.
Total revenue for Q3 2025 was $1.44 billion, a 1% decrease from $1.45 billion in Q3 2024, primarily due to market exits and reduced risk adjustment revenue.
Net loss improved to $110 million in Q3 2025, compared to a net loss of $118 million in Q3 2024, reflecting a 6% improvement.
Adjusted EBITDA loss narrowed to $91 million in Q3 2025, a 5% improvement from a loss of $96 million in Q3 2024.
Total members on the agilon platform decreased to 618,000 as of September 30, 2025, a 6% decline year-over-year, mainly due to previously disclosed market exits.
Revenue by Segment
Forward Guidance
agilon health re-established its full-year 2025 outlook, anticipating total revenues between $5.81 billion and $5.83 billion. The guidance reflects a significant impact from lower-than-expected risk adjustment revenue and exited markets, but also includes an expected positive contribution from ACO model entities to Adjusted EBITDA.
Positive Outlook
- Expected Adjusted EBITDA contribution from ACO model entities of approximately $40-$45 million for fiscal year 2025.
- Continued progress on transformation initiatives, including $30 million in 2026 operating cost reductions.
- Enhanced data visibility and greater financial discipline in payor contracting processes.
- Building a more streamlined, agile, accountable, and performance-driven organization.
- Strong performance expectations for BOI, clinical, and quality initiatives, with potential for more favorable rates and contract economics.
Challenges Ahead
- Full-year impact of approximately $150 million from lower-than-expected risk adjustment revenue.
- Medical margin guidance includes approximately $70 million of negative prior period development reported year to date.
Revenue & Expenses
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