Alignment Healthcare Reports 49% Revenue Growth to $1.015 Billion in Latest Quarter

Alignment Healthcare, Inc. reported significant financial growth in its latest quarterly filing, with total revenues reaching $1.015 billion for the three months ended June 30, 2025, a 49% increase from $681 million in the same period last year. For the first half of 2025, revenues totaled $1.942 billion, up 48% from $1.310 billion in the prior year. The growth was primarily driven by a 27.8% increase in health plan membership, which rose to 223,700 members, and higher revenue per member due to increased CMS benchmark rates and Part D revenue adjustments stemming from the Inflation Reduction Act.

The company also reported a net income of $15.7 million for the second quarter, a substantial turnaround from a net loss of $24 million in the same quarter of 2024. This marks a significant improvement in operational performance, with income from operations at $22.7 million compared to a loss of $18.4 million a year earlier. The medical benefits ratio improved to 86.7% from 88.7%, indicating better management of medical expenses relative to revenues.

In terms of operational developments, Alignment Healthcare has expanded its market presence, now operating in 45 markets across five states, including California, North Carolina, Nevada, Arizona, and Texas. The company has also enhanced its technology platform, AVA, which supports personalized care and member engagement, contributing to improved health outcomes and reduced hospital admissions. The company’s employee headcount has also increased, reflecting its growth strategy and operational expansion.

The filing noted that medical expenses increased to $881.7 million for the second quarter, up 45.7% from the previous year, primarily due to the growth in membership and increased costs associated with Part D. Selling, general, and administrative expenses also rose to $103.8 million, reflecting ongoing investments in network development and marketing. Despite these increases, the company managed to maintain a lower percentage of these expenses relative to revenue, indicating improved operational efficiency.

Looking ahead, Alignment Healthcare anticipates continued growth driven by its strategic initiatives, including market expansion and product innovation. The company plans to invest further in its technology and service offerings to enhance member experience and maintain competitive advantages in the Medicare Advantage sector. The management remains optimistic about achieving profitability while navigating the complexities of the healthcare market, particularly in light of regulatory changes and economic conditions.