agilon health Q4 2024 Earnings Report
Key Takeaways
agilon health's Q4 2024 results showed strong revenue growth driven by increased Medicare Advantage membership. The company is navigating a challenging Medicare Advantage environment by implementing strategic actions to reduce underwriting risks and improve platform capabilities.
Total revenue increased 44% to $1.52 billion compared to Q4 2023.
Medicare Advantage membership increased 36% year-over-year to 527,000 members.
Total members on the agilon platform grew to 659,000.
Net loss was $106 million, an improvement compared to a net loss of $230 million in Q4 2023.
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agilon health
agilon health Revenue by Segment
Forward Guidance
Full year 2025 guidance reflects the positive impact from strategic actions and assumes continued elevated medical cost trends; Class of 2025 expected to add approximately 20,000 Medicare Advantage members
Positive Outlook
- Benefits of clinical and operating programs including improved physician onboarding
- Quality performance
- Clinical expense management
- Part D exposure reduced to less than 30% of membership, partially offsetting Inflation Reduction Act impact
- G&A including network support costs expected to remain essentially flat year-over-year.
Challenges Ahead
- Market partnership and payer contract exits of approximately 54,000 members
- Elevated medical cost trend experienced in 2024 will continue in 2025 with an estimated gross cost trend of 6.3% and 5.3% net for year 2+ markets
- Geographic entry costs of $35-40 million reflect the company’s measured growth strategy to better align growth and performance in the current rate and elevated cost environment.
- The Company has not reconciled guidance for medical margin to gross profit or adjusted EBITDA to net income (loss), the most comparable GAAP measures, and has not provided forward-looking guidance for net income (loss) in each case because of the uncertainty around certain items that may impact gross profit or net income (loss), including non-cash stock-based compensation.
- Assumes continued elevated medical cost trends