Evolent Health Inc - Class A
Q4 2025 Earnings
Market Reaction
S&P 500 over the same 30 days: −8.52%.
Did EVH Beat Earnings? Q4 2025 Results
Evolent Health delivered a mixed but ultimately encouraging fourth quarter, posting adjusted earnings of $0.08 per share against a consensus estimate of $0.05, a beat of 62.60%, while revenue of $468.72 million edged past expectations by 0.05%, though it fell 27.5% from the year-ago quarter as the company's scaled-back revenue base reflected deliberate portfolio changes. The headline numbers, however, were overshadowed by a $398.00 million goodwill impairment charge that pushed the GAAP net loss to $429.13 million, or $3.84 per share, compared to a loss of $30.61 million in Q4 2024. Stripping out the impairment, the adjusted picture was notably stronger, with Adjusted EBITDA climbing to $37.79 million at an 8.1% margin, up from $22.61 million and 3.5% a year prior. Shares surged more than 20% following the report, driven largely by forward guidance calling for approximately 30% revenue growth in 2026, with full-year revenue targeted between $2.40 billion and $2.60 billion and Adjusted EBITDA of $110.00 million to $140.00 million, supported by $900.00 million in new Performance Suite revenue.
- Rising medical costs impacting health plans driving robust demand for Evolent's complex specialty care solutions
- Adjusted EBITDA margin improvement to 8.1% from 3.5% in Q4 2024
- Strong customer retention rates
- Migration of Performance Suite clients to enhanced contract model
- Gain on disposal of non-strategic assets of $14.9 million in Q4 2025
“In 2025 we executed on our earnings targets, continued to grow market share, renewed customers at strong rates, and continued the migration of Performance Suite clients to our enhanced Performance Suite contract model. We believe our total forecasted revenue growth of approximately 30% for 2026 demonstrates the power and durability of Evolent's specialty model. While the addition of $900 million in new Performance Suite revenue in 2026, as well as the impact of significant health plan customer membership decreases in their Exchange products, create an impact on Adjusted EBITDA in the first half of the year, we believe our year-end 2026 margins should quickly step-up as new contract reserving effects ease throughout the year and our operating cost reduction plan ramps up across 2026. Most importantly, we believe we will continue to see a sizable market opportunity as health plans turn to Evolent for help in balancing quality and affordability for their members as they navigate oncology, cardiology, and musculoskeletal conditions.”
Evolent Health CEO, on the earnings call
Forward Guidance & Outlook
For full year 2026, Evolent expects revenue in the range of approximately $2.4 billion to $2.6 billion and Adjusted EBITDA of approximately $110 million to $140 million, representing approximately 30% total revenue growth. The company expects to deploy approximately $25 million to $35 million in cash for capitalized software development during 2026. Management noted that $900 million in new Performance Suite revenue and the impact of significant health plan customer membership decreases in Exchange products will create an Adjusted EBITDA headwind in the first half of 2026, but expects margins to step up in the second half as new contract reserving effects ease and operating cost reduction plans ramp up. The company continues to experience strong customer retention and late-stage pipeline activity.
EVH YoY Financials
EVH Revenue by Segment
Figures from SEC filings and company reports. Not investment advice.