Agilon Health, Inc. (NYSE: AGL) reported fourth‑quarter and full‑year fiscal 2025 results that included a revenue beat and an earnings miss. Total revenue for the quarter rose 3% year‑over‑year to $1.569 billion, surpassing the consensus estimate of $1.460 billion. The company’s Medicare Advantage segment generated $1.569 billion in revenue, while the ACO Model segment contributed $1.522 billion, reflecting a 3% increase in total revenue compared with the $1.520 billion reported in Q4 2024.
The company posted a net loss of $188.882 million for the quarter, a decline from the $105.790 million loss reported in Q4 2024. EPS for the quarter was a loss of $0.46, missing the estimate of a $0.27 loss. The miss was driven by a $74 million medical margin loss, a sharp reversal from the $205 million profit recorded in fiscal 2024. The medical margin loss was largely attributable to higher inpatient costs and large discrete claims, which outpaced the company’s risk‑adjustment gains.
Cash at year‑end stood at $285 million, with $91 million tied to unconsolidated ACO entities. The cash position provides a runway through 2026 but underscores the need for a profitability turnaround. Agilon’s full‑year 2025 revenue was $5.93 billion, down 2% from $6.01 billion in 2024, reflecting the company’s deliberate market‑exit strategy to focus on profitability.
For fiscal 2026, Agilon guided revenue to $5.410 billion to $5.580 billion, a modest decline from the $5.93 billion reported in 2025. The company also projected a medical margin of $115 million to $130 million for the first quarter of 2026 and an adjusted EBITDA of $35 million to $45 million for the same period. Full‑year 2026 adjusted EBITDA guidance ranges from a $15 million loss to a $15 million profit, indicating management’s confidence in a near‑breakeven outlook if cost‑control and risk‑adjustment improvements materialize.
Management highlighted the transformation effort as the driver of the current results. Executive Chairman Ron Williams said the company was “building the foundation of sustainable performance through intense focus on operational discipline.” CFO Jeffrey Schwaneke described 2025 as “a transformational year.” Ronald A. Williams added that “while we were not satisfied by our 2025 financial performance, the transformation initiatives are delivering tangible benefits which support our expectation for material improvement in 2026.” The company emphasized its commitment to enhancing clinical pathways and integrating palliative care to improve patient outcomes and reduce costs.
Investors reacted with mixed sentiment, weighing the revenue beat against the EPS miss and the sharp deterioration in medical margin. The company’s guidance for 2026 signals a potential shift toward profitability, but the continued margin compression and the need for further cost control remain key concerns for stakeholders.
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