Astrana Health (ASTH) Q3 2024 earnings summary

Executive summary

• Q3 2024 revenue rose 37% year-over-year to $478.7M, driven by acquisitions and capitation growth, with YTD revenue up 32% to $1.37B.

• Net income for Q3 2024 was $16.1M, down 27% year-over-year; YTD net income rose 4% to $50.1M.

• Adjusted EBITDA for Q3 was $45.2M (9% margin), down 13% year-over-year; YTD Adjusted EBITDA grew 15% to $135.3M.

• Closed the acquisition of Collaborative Health Systems (CHS), expanding reach to over 1.1M patients and 2,500+ PCPs across up to 17 states.

• Opened new primary care clinics, launched a Medicare Advantage plan with SCAN Health Plan, and signed a $745M agreement to acquire Prospect Medical Holdings assets.

Financial highlights

• Q3 2024 total revenue: $478.7M (+37%); Care Partners revenue: $455.8M (+42%); Care Delivery revenue: $34.7M (+20%).

• Q3 net income: $16.1M (-27%); EPS-diluted: $0.33 (-30%); Adjusted EBITDA: $45.2M (-13%).

• Nine months ended Sept 30, 2024: total revenue $1.37B (+32%), net income $50.1M (+4%), EPS-diluted $1.04 (+1%), Adjusted EBITDA $135.3M (+15%).

• Cash and investments at Sept 30, 2024: $350.3M; long-term debt at $423.1M.

• Q3 2024 capitation revenue grew 41% year-over-year to $431.4M; risk pool settlements rose 45% to $21.8M.

Outlook and guidance

• 2024 revenue guidance raised to $1.95B–$2.03B; Adjusted EBITDA: $165M–$175M; net income: $52M–$58M; EPS-diluted: $1.06–$1.19.

• Guidance reflects contribution from CHS and other recent acquisitions.

• CHS expected to contribute ~$200M revenue in Q4, with a ~$4M negative EBITDA impact.

• Full-risk capitation revenue targeted to reach 67% by January 2025.

• Prospect Medical Holdings acquisition expected to close mid-2025, subject to regulatory approvals.