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Dec 31, 2025
Evolent Health Q4 2025 Earnings Report
Evolent Health reported Q4 2025 financial results, highlighting a significant GAAP net loss driven by a $398 million goodwill impairment while maintaining positive Adjusted EBITDA.
Key Takeaways
Evolent Health's Q4 2025 was characterized by a revenue decline to $468.7 million compared to the prior year, largely impacted by a massive $398 million goodwill impairment charge. Despite the GAAP net loss, the company achieved an Adjusted EBITDA of $37.8 million and provided strong 2026 revenue guidance of $2.4 billion to $2.6 billion, representing approximately 30% growth.
Revenue for Q4 2025 was $468.7 million, down from $646.5 million in Q4 2024.
A $398.0 million goodwill impairment charge significantly impacted GAAP net income and operating results.
Adjusted EBITDA margin improved to 8.1% in Q4 2025 compared to 3.5% in the same period last year.
The company expects significant growth in 2026, driven by $900 million in new Performance Suite revenue.
Revenue by Segment
Forward Guidance
Evolent expects robust revenue growth in 2026, though margins will be pressured in the first half of the year due to new contract implementations and customer membership shifts.
Positive Outlook
- Full year 2026 revenue guidance of $2.4 billion to $2.6 billion.
- Forecasted revenue growth of approximately 30% for 2026.
- Addition of $900 million in new Performance Suite revenue in 2026.
- Strong customer retention and late-stage pipeline activity.
- Operating cost reduction plan expected to ramp up across 2026.
Challenges Ahead
- Adjusted EBITDA guidance of $110 million to $140 million is lower than 2025 levels.
- Impact of significant health plan customer membership decreases in Exchange products.
- New contract reserving effects will impact margins in the first half of 2026.
- Capitalized software development spend of $25 million to $35 million expected.
Historical Earnings Impact
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Avg. Return Before/After Earnings
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