Agilon Health Reports 40% Revenue Growth to $6.06 Billion, Faces Net Loss of $260.1 Million

Agilon Health, Inc. reported significant financial developments for the fiscal year ending December 31, 2024, showcasing a 40% increase in total revenue, which reached $6.06 billion, compared to $4.32 billion in 2023. The company's medical services revenue, which constitutes the bulk of its income, also rose by 40%, driven by a 36% increase in Medicare Advantage (MA) membership, totaling approximately 526,500 members. Despite this revenue growth, Agilon experienced a net loss of $260.1 million, slightly improved from a loss of $262.8 million in the previous year. The gross profit for the year was reported at $4.8 million, a significant decline from $69.7 million in 2023, reflecting increased medical services expenses that rose by 46% to $5.84 billion.

The company noted that its operational metrics were influenced by the expansion into seven new geographies and growth in existing markets. The average membership during 2024 was approximately 522,100, and the total attributed beneficiaries under the Centers for Medicare & Medicaid Services’ (CMS) Accountable Care Organization (ACO) models increased by 48% to 132,100. However, the medical margin decreased to $205.2 million from $298.7 million in 2023, indicating challenges in managing healthcare costs amid rising expenses.

Strategically, Agilon Health has focused on enhancing its partnerships with primary care physicians through its unique platform, which aims to empower these providers in managing patient care under a capitated payment model. The company operates 33 risk-bearing entities (RBEs) and has established long-term agreements with physician groups, which are crucial for its growth strategy. In 2024, Agilon also completed the acquisition of My Personal Health Record Express, Inc. for $45.3 million, aimed at bolstering its technology and interoperability capabilities.

Looking ahead, Agilon Health anticipates continued investment in expanding its operations and enhancing its service offerings, which may lead to further operating losses in the near term. The company has indicated that it may require additional capital resources to support its growth initiatives, particularly as it navigates the complexities of the healthcare market and regulatory environment. As of December 31, 2024, Agilon had cash and cash equivalents of $188.2 million and marketable securities totaling $211.7 million, positioning it to meet its operational needs for at least the next 12 months. However, the company remains cautious about potential future funding requirements and the impact of economic conditions on its business performance.