Astrana Health (ASTH) Q3 2024 earnings summary

Executive summary

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

• 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 2024 was $45.2M (down 13% year-over-year), with a margin of 9%; YTD Adjusted EBITDA rose 15% to $135.3M.

• Closed the acquisition of Collaborative Health Systems, expanding the provider network and patient reach across up to 17 states and adding over 2,500 PCPs and 100,000 Medicare members.

• 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, expected to close mid-2025.

Financial highlights

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

• Q3 2024 net income: $16.1M (-27%); EPS-diluted: $0.33 (-30%); Adjusted EBITDA: $45.2M (-13%).

• YTD 2024 Adjusted EBITDA: $135.3M (+15%); YTD net income: $50.1M (+4%); YTD EPS-diluted: $1.04 (+1%).

• Cash and investments at September 30, 2024: $350.3M; long-term debt: $423.1M; total assets: $1.29B.

• Operating expenses for Q3 2024 increased 46% to $450.3M, mainly from higher cost of services and G&A.

Outlook and guidance

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

• Guidance reflects the contribution from the CHS acquisition and ongoing integration of recent deals.

• CHS expected to contribute $450M in revenue and break-even Adjusted EBITDA by end of 2025.