Evolent Health (EVH) Q4 2025 earnings summary

Executive summary

• Q4 2025 revenue reached $469 million, with Adjusted EBITDA of $37.8 million, both exceeding guidance and reflecting disciplined execution, strong customer retention, and new partner additions.

• Oncology is expected to comprise 65% of 2026 revenue, up from 36% in 2025, positioning it as the core growth driver.

• Migrated 90% of Performance Suite revenue to the Enhanced Performance Suite model, retaining all key customers and signing two major new ones.

• Closed the divestiture of Evolent Care Partners in December 2025, using proceeds to pay down senior term debt.

• Achieved earnings targets for 2025, grew market share, and maintained strong customer renewal rates.

Financial highlights

• FY 2025 revenue (post-ACO divestiture): $1.7 billion; full-year revenue $1.88 billion; Adjusted EBITDA: $151.2 million; Q4 Adjusted EBITDA: $37.8 million.

• Q4 2025 GAAP net loss attributable to common shareholders was $429.1 million; full year net loss was $579.4 million.

• Adjusted EBITDA margin for 2025 was 8.1%, up from 6.3% in 2024.

• Year-end cash: $151.9 million; net debt: $782 million; total available liquidity: $204.4 million.

• Large non-cash goodwill impairment recorded due to market valuation declines.

Outlook and guidance

• 2026 revenue guidance: $2.4–$2.6 billion, reflecting 30–33% YoY growth, driven by new Performance Suite launches and favorable Medicare mix.

• 2026 Adjusted EBITDA guidance: $110–$140 million, with 70% expected in the second half due to reserving impacts from new contracts.

• Q4 2026 run-rate Adjusted EBITDA projected to exceed $150 million.

• MER expected to rise to 93% in 2026 due to new contract reserving, then improve as contracts mature.

• $10–$20 million in operating cash flow expected for 2026 after $60 million in interest expense.