Alignment Healthcare Reports 47.5% Revenue Growth to $926.9 Million in Latest Quarter

Alignment Healthcare, Inc. reported significant financial growth in its latest quarterly filing, with total revenues reaching $926.9 million for the three months ended March 31, 2025, a 47.5% increase from $628.6 million in the same period last year. The growth was primarily driven by a 31.7% increase in health plan membership, which rose to 217,500 members, and higher revenue per member due to increased CMS benchmark rates and Part D revenue rates influenced by the Inflation Reduction Act. Despite the revenue growth, the company reported a net loss of $9.4 million, a notable improvement from a loss of $46.6 million in the prior year, reflecting a 79.9% reduction in losses.

Operationally, Alignment Healthcare has expanded its footprint, now offering plans in 45 markets across five states, including California, North Carolina, Nevada, Arizona, and Texas. The company’s medical expenses also increased, totaling $820.9 million, up 43.2% from $573.2 million a year earlier, largely due to the growth in membership and increased costs associated with Part D. However, the medical benefits ratio improved to 88.4% from 90.9%, indicating better management of healthcare costs relative to premiums earned.

In terms of strategic developments, Alignment Healthcare appointed James Head as the new Chief Financial Officer, effective May 2, 2025, succeeding Thomas Freeman, who will transition to a strategic advisory role. This leadership change is part of the company's ongoing efforts to enhance its operational capabilities and support its growth strategy. The company continues to invest in its proprietary technology platform, AVA, which is designed to improve member engagement and care delivery, further supporting its goal of becoming a leading provider in the Medicare Advantage sector.

The company’s cash position remains strong, with cash and cash equivalents totaling $446.2 million as of March 31, 2025, compared to $238.9 million a year earlier. This liquidity is expected to support ongoing operational needs and strategic initiatives, including potential market expansions and technology investments. Looking ahead, Alignment Healthcare anticipates continued growth in membership and revenue, driven by its consumer-centric healthcare model and the ability to deliver high-quality care while managing costs effectively. The company remains focused on enhancing its service offerings and expanding its market presence to capture a larger share of the Medicare Advantage market.