Astrana Health Reports 53% Revenue Growth to $620.4 Million in Q1 2025

Astrana Health, Inc. reported significant financial results for the first quarter of 2025, with total revenue reaching $620.4 million, a 53% increase from $404.4 million in the same period last year. The growth was primarily driven by a 60% rise in capitation revenue, which amounted to $584.0 million, attributed to recent acquisitions and an increase in enrolled patients transitioning to full risk under the company's healthcare plans. However, net income attributable to Astrana decreased to $6.7 million, down 55% from $14.8 million in the prior year, reflecting increased operational costs and a decline in income from equity method investments.

Operating expenses also rose significantly, totaling $599.8 million, a 60% increase compared to $374.2 million in the previous year. The cost of services, excluding depreciation and amortization, surged by 66% to $549.1 million, driven by higher medical costs associated with the company's expanded risk-bearing operations. General and administrative expenses increased by 13% to $43.9 million, reflecting investments in operational growth and stock-based compensation. The company reported an operating income of $20.6 million, down 32% from $30.1 million in the prior year.

In terms of strategic developments, Astrana has made notable leadership changes, appointing Georgie Sam as Chief Data & Analytics Officer and Glenn Sobotka as Chief Accounting Officer, while promoting Rita Pew to Chief People Officer. The company also received regulatory approval for its pending acquisition of Prospect Health, which is expected to close in the summer of 2025. This acquisition is part of Astrana's strategy to enhance its capabilities in managing value-based care.

Operationally, Astrana managed over 1.0 million patients as of March 31, 2025, through its network of more than 12,000 contracted physicians. The company operates 20 independent risk-bearing organizations, an increase from 18 in the previous year. The increase in patient volume and the expansion of its Care Partners segment contributed to the overall growth in revenue. However, the company experienced a loss from equity method investments, which negatively impacted its net income.

Looking ahead, Astrana remains optimistic about its growth trajectory, supported by its strategic acquisitions and leadership enhancements. The company anticipates continued revenue growth driven by its integrated healthcare delivery model and the expansion of its risk-bearing organizations. However, it also acknowledges the challenges posed by rising operational costs and the need to manage its financial performance effectively in the evolving healthcare landscape.