Alignment Healthcare (ALHC) Q2 2026 earnings summary

Executive summary

• Health plan membership grew 31.5% year-over-year to 294,100 as of June 30, 2026, driving a 31.6% increase in quarterly revenues to $1.34 billion and a 32.4% increase in six-month revenues to $2.57 billion.

• Net income for Q2 2026 was $36.6 million, up from $15.7 million in Q2 2025, with adjusted EBITDA rising 48.4% to $68.1 million (5.1% margin).

• The medical benefits ratio (MBR) improved to 86.3% from 86.7% year-over-year, reflecting effective cost management.

• Investments in AI, clinical operations, and automation are supporting both near-term efficiency and long-term scalability.

• Embedded gross profit potential within current membership has grown to $880 million, with 2026 full-year guidance midpoint at $640 million adjusted gross profit.

Financial highlights

• Adjusted gross profit for Q2 2026 was $182.9 million, up 35.3% year-over-year, with an adjusted MBR of 86.3%.

• Adjusted SG&A was $115 million (8.6% of revenue), improving 20 basis points year-over-year.

• Operating cash flow for the first half was $111.4 million, up from $45.7 million in the prior year; liquidity at quarter-end was $701.7 million in cash and equivalents.

• Funded leverage ratio improved to 2.2x trailing 12-month EBITDA.

• Quarterly income from operations increased 85.1% to $42.1 million; net income margin rose to 2.7% of revenue.

Outlook and guidance

• Full-year 2026 guidance: membership 298,000–301,000; revenue $5.20–$5.23 billion; adjusted gross profit $630–$650 million; Adjusted EBITDA $145–$163 million.

• Q3 2026 guidance: membership 295,500–297,500; revenue $1.30–$1.32 billion; adjusted gross profit $148–$158 million; Adjusted EBITDA $20–$30 million.

• Raised full-year revenue and profitability guidance following strong first half; expect 30% of full-year Adjusted EBITDA in the second half.

• Management expects continued investment in technology, market expansion, and product innovation to drive future growth.

• Cash flows and liquid assets are expected to be sufficient to fund operations and capital needs for at least the next 12 months.