Astrana Health Reports $3.18 Billion Revenue for 2025, Driven by Acquisition and Capitation Growth

Astrana Health, Inc. reported total revenue of $3.18 billion for the year ended December 31, 2025, a 56% increase compared to $2.03 billion in 2024. This growth was significantly influenced by the July 1, 2025, acquisition of Prospect Medical Holdings, Inc., which contributed approximately $616.3 million to the revenue. Capitation revenue also played a key role, increasing by $539.0 million due to prior acquisitions within the Care Partners segment and enrollees transitioning to full risk through the company's Restricted Knox-Keene plans.

Operating expenses for 2025 totaled $3.10 billion, a 60% increase from $1.95 billion in the previous year. The cost of services, excluding depreciation and amortization, rose to $2.84 billion, primarily driven by increased participation in a value-based Medicare FFS model and medical costs associated with the Restricted Knox-Keene licensed health plan, including $538.3 million from Prospect. General and administrative expenses also increased to $217.3 million, reflecting the inclusion of Prospect's operations and transaction costs related to acquisitions. Despite the revenue growth, net income attributable to Astrana Health, Inc. decreased by 48% to $22.5 million, compared to $43.1 million in 2024, due to higher utilization, increased general and administrative expenses, and a rise in interest expense.

Operationally, Astrana managed 28 risk-bearing organizations as of December 31, 2025, up from 20 in the previous year, coordinating care for approximately 1.6 million patients. The company's strategic focus included partnerships with a provider group in Southern California and Intermountain Health in southern Nevada, aimed at expanding access to coordinated care and improving patient outcomes. A key development was the Second Amended and Restated Credit Agreement, providing financial flexibility with a $300 million revolving credit facility, a $250 million term loan, and a $745 million delayed draw term loan, primarily used to fund the Prospect acquisition.

Looking ahead, Astrana faces potential challenges from the One Big Beautiful Bill Act, which introduces Medicaid work-requirement pilots and tighter provider tax rules. The company also anticipates potential impacts from proposed 2027 Medicare Advantage payment rates. Despite these headwinds, Astrana believes it is well-positioned to navigate these changes, citing its diversified footprint, strong Medicaid performance, and investment in care-enablement infrastructure. The company's strategic priorities include maintaining continuity of care and supporting its state partners through policy transitions. However, a material weakness in internal control over financial reporting related to accounting for business combinations was identified, requiring remediation efforts to ensure the completeness and accuracy of financial reporting.