Alignment Healthcare Inc
Q3 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: +0.27%.
Did ALHC Beat Earnings? Q3 2025 Results
Alignment Healthcare posted a standout third quarter for fiscal 2025, delivering beats on both the top and bottom lines as the Medicare Advantage operator swung to a profit ahead of Wall Street's expectations. The company reported revenue of $993.70 million, up 43.5% year-over-year and ahead of the $981.35 million consensus, while diluted EPS came in at $0.02 against an estimated loss of $0.01, a 300.00% beat that marked a sharp reversal from the $0.14 per-share loss recorded in Q3 2024. The primary engine behind that momentum was membership growth, with health plan enrollment climbing 25.9% year-over-year to approximately 229,600 members, driving scale across the company's AVA-powered care model and pushing adjusted EBITDA to $32.44 million from just $5.92 million a year ago. Management raised its full-year 2025 outlook for the third consecutive quarter, now guiding revenue of $3.93 billion to $3.95 billion and adjusted EBITDA of $90 million to $98 million, reflecting growing confidence in the company's ability to expand its national footprint into 2027 and beyond.
- Health plan membership growth of 25.9% year-over-year to approximately 229,600 members
- Earned premiums grew 43.7% year-over-year to $983.7 million
- Medical benefits ratio based on adjusted gross profit was 87.2%
- 100% of members in 4-star or higher rated plans for second consecutive year
- Two 5-star contracts in Nevada and North Carolina and a 4.5-star contract in Texas
- Adjusted EBITDA surged to $32.4 million from $5.9 million in Q3 2024
- Interest expense declined to $4.0 million from $6.9 million year-over-year
“Our third quarter results mark the third consecutive quarter in which we surpassed the high end of our guidance across all key metrics. These outcomes reinforce the strength and scalability of our care model, which continues to deliver consistent results across our markets. With 100% of our members in 4-star or higher plans for the second year in a row, we are leading a paradigm shift in Medicare Advantage that prioritizes quality, access and putting seniors first.”
Alignment Healthcare CEO, on the earnings call
Forward Guidance & Outlook
For Q4 2025, the company guides membership of 232,500–234,500, revenue of $995M–$1,010M, adjusted gross profit of $104M–$113M, and adjusted EBITDA of $(9)M–$(1)M. For full-year 2025, the raised outlook calls for membership of 232,500–234,500, revenue of $3,931M–$3,946M, adjusted gross profit of $474M–$483M, and adjusted EBITDA of $90M–$98M. All key metrics were raised from prior guidance.
ALHC YoY Financials
ALHC Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.