Evolent Health (EVH) Q4 2024 earnings summary

Executive summary

• 2024 revenue reached $2.55 billion, up 30% year-over-year, with Adjusted EBITDA of $160.5 million at the low end of guidance due to elevated oncology expenses.

• Achieved 100% logo renewal rate among top customers representing over 90% of revenue, including a contract extension with Centene.

• Successfully renegotiated three Performance Suite contracts, projecting $115 million in Adjusted EBITDA improvement for 2025, with 100% client retention.

• Acquired and integrated Machinify Auth assets to accelerate AI-driven efficiency and customer experience improvements.

• Net loss attributable to common shareholders was $93.5 million for 2024, with a net loss margin of (3.7)%.

Financial highlights

• Q4 2024 revenue was $646.5 million, up 16.3% year-over-year; full year revenue was $2.55 billion.

• Q4 Adjusted EBITDA was $22.6 million, with a margin of 3.5%; full year Adjusted EBITDA was $160.5 million, margin 6.3%.

• Net loss for Q4 2024 was $30.6 million, with a net loss margin of (4.7)%.

• Cash and equivalents at year-end were $104.2 million; net leverage at 3.6x.

• Loss per share was $(0.81) for 2024, improved from prior year.

Outlook and guidance

• 2025 revenue guidance is $2.06–$2.11 billion, reflecting 15–18% organic growth after adjusting for one-time contract changes.

• 2025 Adjusted EBITDA guidance is $135–$165 million, with 80% of the midpoint expected from non-risk contracts.

• Oncology cost growth is assumed at 12% for 2025, with margin recovery of about 400 basis points from 2024 declines.

• Q1 2025 revenue expected between $440–$470 million; Adjusted EBITDA between $31–$37 million.

• Plans to deploy ~$35 million in capitalized software development in 2025.