agilon health (AGL) Q2 2026 earnings summary

Executive summary

• Q2 2026 revenue rose 7% year-over-year to $1.5 billion, with net income of $18 million, gross profit of $107 million, and adjusted EBITDA of $70 million, all reversing prior year losses.

• Medicare Advantage membership declined 12% year-over-year to 437,000–437,500, reflecting strategic exits and a focus on profitability.

• Transformation initiatives in clinical and operational performance, data and risk management, and scalable models are showing measurable progress.

• Investments in AI, technology, and evidence-based clinical pathways are improving care consistency and outcomes, especially in chronic disease management.

• ACO REACH program delivered $229 million in gross savings and a 96% quality score for 2024.

Financial highlights

• Medical margin for Q2 2026 was $197 million, compared to -$53 million in Q2 2025, exceeding guidance midpoint by $74 million.

• Adjusted EBITDA for Q2 2026 was $70 million, compared to -$83 million in Q2 2025, exceeding guidance midpoint by $50 million.

• Gross profit for Q2 2026 was $107 million, versus a $52 million loss in Q2 2025.

• Cash, cash equivalents, and marketable securities totaled $257 million as of June 30, 2026; $83 million off-balance-sheet cash in ACO entities.

• Year-to-date revenue as of June 30, 2026 was $2.9 billion, flat compared to the same period in 2025.

Outlook and guidance

• Full-year 2026 guidance raised: revenue expected at $5.8 billion, medical margin at $485 million, and adjusted EBITDA at $85 million.

• Q3 2026 guidance: revenue of $1.46 billion, medical margin of $110 million, and break-even adjusted EBITDA.

• Cost trend for full-year 2026 now estimated at 5.8%, down from 6.2% previously; prudent assumption of 7% for the remainder of the year.

• ACO REACH adjusted EBITDA expected between $25 million and $30 million for the year.

• Full-year guidance reflects stronger risk score execution and favorable medical cost trends.