In This Article:
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Revenue: $1.52 billion for Q4 2024, $6.06 billion for the full year, a 44% increase year-over-year.
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Medical Margin: $1 million for Q4 2024, $205 million for the full year.
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Adjusted EBITDA: Minus $84 million for Q4 2024, minus $154 million for the full year.
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Medicare Advantage Membership: Increased 36% year-over-year to 527,000 members.
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ACO Model Membership: 132,000 members, a 48% year-over-year growth.
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2025 Revenue Guidance: Expected to decline 2% to $5.925 billion.
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2025 Medical Margin Guidance: Expected to improve 46% to $300 million at the midpoint.
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2025 Adjusted EBITDA Guidance: Expected to be minus $75 million at the midpoint.
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Cash and Marketable Securities: $406 million at the end of Q4 2024.
Release Date: February 25, 2025
For the complete transcript of the earnings call, please refer to the full earnings call transcript.
Positive Points
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Agilon Health Inc (NYSE:AGL) reported a 44% increase in total revenue for the fourth quarter, reaching $1.52 billion, driven by the expansion of the 2024 partner class and organic growth.
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The company successfully reduced its Medicare Part D exposure to less than 30% of its membership, exceeding its initial goal of 50%, which is expected to reduce risk.
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Agilon Health Inc (NYSE:AGL) achieved a 36% year-over-year increase in Medicare Advantage membership, reaching 527,000 members by the end of the fourth quarter.
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The company has implemented strategic actions to improve financial performance, including exiting unprofitable partnerships and enhancing data and analytics capabilities.
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Agilon Health Inc (NYSE:AGL) has a strong pipeline for the class of 2026, with signed letters of intent, indicating continued growth potential.
Negative Points
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The company reported an adjusted EBITDA loss of $84 million for the fourth quarter and $154 million for the full year, reflecting lower medical margins and higher costs.
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Agilon Health Inc (NYSE:AGL) anticipates a 4% decline in Medicare Advantage membership for 2025, due to partnership exits and payor contract terminations.
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The company is facing ongoing challenges in the Medicare Advantage market, including elevated cost trends and regulatory changes impacting its 2025 outlook.
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Medical margin for the full year 2024 was negatively impacted by prior year development and elevated medical cost trends, resulting in a lower-than-expected outcome.
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Agilon Health Inc (NYSE:AGL) expects continued high medical cost trends in 2025, with an estimated gross cost trend of 6.3%, posing a challenge to financial performance.