Evolent Health (EVH) investor relations material

Financial performance and guidance

• Achieved second consecutive EBITDA outperformance this year, leading to an increase in the lower end of EBITDA guidance for the remainder of the year.

• Revenue guidance was revised downward due to timing shifts in contract go-lives, notably a large Aetna partnership now expected to launch in Q1 next year instead of Q3 this year.

• Conservative reserving posture maintained, with oncology cost trends forecasted at 12% but actuals trending lower at around 10.5%.

• Favorable claims development continued into July, supporting positive outlook for the rest of the year.

• Guidance philosophy shifted to set the fully contracted point at the midpoint of the revenue range, allowing for flexibility amid market uncertainties.

Contract updates and operational improvements

• Aetna partnership expanded to include group MA lives, with launch delayed to ensure robust data exchange and operational setup.

• Additional state performance suite contract delayed by regulatory issues, now set to go live September 1.

• Enhanced data integration and contractual protections implemented to prevent claim surprises experienced in prior years.

• All performance suite contracts now benefit from improved data visibility and narrower risk corridors.

• Over 80% of requests now processed through the digital portal, with ongoing investments in interoperability ahead of 2027 industry standards.

Industry trends and regulatory environment

• Managed care organizations increasingly seek external partners due to rising medical expenses and new regulatory requirements for faster, digital prior authorization.

• Participation in industry discussions with AHIP and HHS to shape value-based care standards.

• Medicaid impacts from recent legislation expected mainly in 2027, with some state-level variation.

• Exchange business represents about 20% of revenue and is expected to be a smaller EBITDA contributor next year.

• Weighted pipeline exceeds $1 billion, supporting confidence in achieving 20% annual EBITDA growth across various market scenarios.