Astrana Health (ASTH) Q2 2024 earnings summary

Executive summary

• Q2 2024 revenue grew 40% year-over-year to $486.3 million, with net income up 46% to $19.2 million and adjusted EBITDA up 34% to $47.9 million, driven by organic expansion, acquisitions, and new market entries.

• Entered Arizona and Hawai'i through new partnerships, expanded Care Enablement platform, and announced the acquisition of Collaborative Health Systems, adding 2,500+ PCPs and 100,000+ Medicare members.

• Strategic partnerships with Anthem Blue Cross and Elation Health to drive value-based care and technology-enabled provider support.

• Guidance for 2024 was raised, with further expansion expected from acquisitions and partnerships.

Financial highlights

• Q2 2024 total revenue reached $486.3 million, up 40% year-over-year; Care Partners revenue grew 44% to $463.3 million.

• Net income attributable to Astrana was $19.2 million, up 46%; diluted EPS rose 43% to $0.40.

• Adjusted EBITDA for Q2 was $47.9 million, with a margin of 10%.

• Six-month 2024 revenue was $890.6 million, up 30% year-over-year; net income for six months was $34.0 million, up 29%.

• Cash and investments as of June 30, 2024, totaled $327.7 million; total debt at $446 million, reflecting acquisition financing.

Outlook and guidance

• 2024 revenue guidance raised to $1.75–$1.85 billion; adjusted EBITDA guidance maintained at $165–$185 million.

• Net income guidance for 2024 set at $54–$66 million; EPS guidance revised to $1.12–$1.36 due to acquisition-related amortization.

• Q2 Adjusted EBITDA expected to be the highest quarter of the year, with step-downs in Q3 and Q4 due to timing of incentive payments.

• On track for 2/3 of capitation revenue from full risk by January 2025.

• Management expects continued growth from recent acquisitions and partnerships, with further expansion in value-based care.