Agilon Health Reports Q1 2025 Revenue Decline to $1.53 Billion, Net Income Turnaround

Agilon Health, Inc. reported its financial results for the first quarter of 2025, revealing a total revenue of $1.53 billion, a decrease of 4% from $1.60 billion in the same period last year. The decline in revenue was primarily attributed to a 6% reduction in Medicare Advantage (MA) membership, which fell to approximately 490,700 members. Despite the revenue drop, the company achieved a net income of $12.1 million, a significant turnaround from a net loss of $6.0 million in the first quarter of 2024. This improvement was bolstered by a gain from discontinued operations related to the sale of its Hawaii operations.

In terms of expenses, Agilon's total expenses decreased to $1.55 billion from $1.61 billion year-over-year. Medical services expenses, which account for the majority of costs, also saw a reduction, falling to $1.40 billion from $1.44 billion. The company reported a gross profit of $50.7 million, down from $75.1 million in the prior year, reflecting a medical margin of $128 million compared to $157 million in the first quarter of 2024. The decrease in gross profit was influenced by the decline in membership and associated revenues.

Operationally, Agilon Health continues to focus on its strategic initiatives, including its partnerships with physician groups and the expansion of its Medicare-centric model. The company reported that it is currently managing 33 wholly-owned risk-bearing entities (RBEs) and has made significant investments in its platform to enhance service delivery. As of March 31, 2025, Agilon's cash and cash equivalents totaled $136.9 million, down from $188.2 million at the end of 2024, while marketable securities increased to $230.1 million from $211.7 million.

Looking ahead, Agilon Health anticipates ongoing challenges related to membership levels and market conditions, which may impact future revenues. The company is committed to investing in its growth strategies and expanding its geographic footprint, although it acknowledges the potential need for additional capital resources to support these initiatives. The management remains optimistic about the long-term prospects of its business model, which aims to empower primary care physicians in managing the healthcare needs of their patients.